Published: 2024-05-03T12:49:45.000Z
Chart USD Index DXY Update: Sharp break lower
Senior Technical Strategist
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Cautious trade has given way to the anticipated break lower
Levels | Imp | Comment | Levels | Imp | Comment | |||
---|---|---|---|---|---|---|---|---|
R4 | 106.50/52 | ** | congestion; 16 Apr YTD high | S1 | 104.50 | break level | ||
R3 | 106.00 | * | congestion | S2 | 104.25 | ** | 38.2% ret of Dec-May rally | |
R2 | 105.50 | * | congestion | S3 | 104.00 | ** | congestion | |
R1 | 105.00 | ** | break level | S4 | 103.55 | ** | 50% ret of Dec-May rally |
Asterisk denotes strength of level
13:35 BST - Cautious trade has given way to the anticipated break lower, with sharp losses currently finding support at 104.50. Daily readings continue to track lower and overbought weekly stochastics are unwinding, highlighting a bearish tone and room for still deeper losses in the coming sessions. A break below 104.50 will open up the 104.25 Fibonacci retracement, with room for further losses to congestion around 104.00. Meanwihle, resistance is lowered to 105.00. A close above here, if seen, will turn sentiment neutral and prompt fresh consolidation beneath congestion around 105.50.