Published: 2024-05-07T13:08:40.000Z
Chart USD Index DXY Update: Consolidating - background studies under pressure
Senior Technical Strategist
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Little change, as prices extend consolidation following the bounce from support at 104.50
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
13:55 BST - Little change, as prices extend consolidation following the bounce from support at 104.50. Oversold daily stochastics are flattening, suggesting potential for a test of 105.00. However, the bearish daily Tension Indicator and deteriorating weekly charts should limit any tests in consolidation/selling interest. In the coming sessions, cautious trade is expected to give way to renewed tests lower. A later break below 104.50 will open up the 104.25 Fibonacci retracement, with room for further losses to congestion around 104.00.