Chart USD Index DXY Update: Short-term ranging. Lower later
The test of congestion around 90.00 has given way to a short-term corrective bounce, whilst oversold intraday studies unwind.
Focus is turning to 90.50, but negative stochastics and the deteriorating Tension Indicator suggest difficulty sustaining any immediate tests/break. In the coming sessions, consolidation is expected to give way to further losses, with a later close below 90.00 opening up critical support at 89.21/23. Improving weekly charts should prompt fresh consolidation above here.
Focus is turning to 90.50, but negative stochastics and the deteriorating Tension Indicator suggest difficulty sustaining any immediate tests/break. In the coming sessions, consolidation is expected to give way to further losses, with a later close below 90.00 opening up critical support at 89.21/23. Improving weekly charts should prompt fresh consolidation above here.
We are an award winning independent research firm, covering Macroeconomics, Policy and Financial Markets. Our Technical Analysis coverage spans 40 FX pairs across developed and emerging markets. Register for a free trial at www.continuumeconomics.com