Chartbook: Chart USD Index DXY: Balanced in broad range - long-term studies mixed/negative
The anticipated break lower was not seen, with prices posting a smart bounce following the test below support at the 101.40 Fibonacci retracement
The anticipated break lower was not seen, with prices posting a smart bounce following the test below support at the 101.40 Fibonacci retracement.
Steady gains have reached congestion resistance at 105.00, where fresh sellers are prompting a pullback and cautious trade around 104.00. Bearish weekly charts are flattening, suggesting potential for a later test above 105.00. Late-December gains will then extend towards critical resistance at the 107.15 Fibonacci retracement, where mixed monthly charts should prompt fresh reactions. A close above here, however, will turn sentiment positive and extend broader gains from the 99.58 year low of July 2023 beyond congestion around 108.00 towards stronger resistance at the 109.00 retracement.
Meanwhile, support is at congestion around 100.00 and extends to 99.58.
The bearish monthly Tension Indicator and deteriorating longer-term charts highlight room for a later close beneath here and completion of a multi-month bearish continuation pattern, capped by the 107.15 retracement.
The bear trend from the 114.78 year high of September 2022 will then extend.
A further close below the 99.00 Fibonacci retracement will add further weight to already negative price action and put focus on the 95.25 retracement and congestion around 95.00. By-then oversold monthly stochastics are expected to limit any initial tests of this latter area in short-covering/consolidation.