Chart USD Index DXY Update: Cautious trade around 2024 year highs
The anticipated break above 106.00 has extended
Levels | Imp | Comment | Levels | Imp | Comment | |||
---|---|---|---|---|---|---|---|---|
R4 | 108.00 | ** | break level | S1 | 106.00 | * | congestion | |
R3 | 107.35 | ** | 3 Oct 2023 (y) high | S2 | 105.41 | * | 26 Apr (w) low | |
R2 | 107.15 | ** | 50% ret of Sep-Jul fall | S3 | 105.00 | ** | break level | |
R1 | 106.50/52 | ** | congestion; 16 Apr YTD high | S4 | 104.50 | break level |
Asterisk denotes strength of level
14:00 BST - The anticipated break above 106.00 has extended, with prices meeting anticipated selling interest just beneath strong resistance at congestion around 106.50 and the 106.52 current year high of 16 April. A minor pullback is developing, as overbought intraday studies unwind and daily stochastics continue to track lower, with congestion support at 106.00 to attract. A break will open up the 105.41 weekly low of 26 April, but the flattening daily Tension Indicator and rising weekly charts should limit any initial tests in fresh consolidation. A close beneath here will add weight to price action and open up support at 105.00. Meanwhile, a close above 106.50/52 would turn sentiment positive and extend late-December gains towards the 107.15 Fibonacci retracement.