USD DXY Index to post a short-term corrective pullback
The USD DXY Index continues to find difficulty sustaining higher levels, as resistance firms at the 102.26 high of 2 March.
The anticipated corrective pullback is now underway, as daily studies extend lower, with a break below congestion around 101.00 opening up the 100.41 low of 16 February. A further break cannot be ruled out, as momentum studies and the Tension Indicator continue to weaken, but critical support at the 99.23 monthly low of 2 February and 99.27, (38.2%) Fibonacci retracement of the 2016-2017 rally should underpin immediate tests.
If broken, however, a deeper reaction will be confirmed, as the January bear trend gains traction and investors move to a negative stance.
An unexpected close above 102.26 is needed to confirm further USD gains, and open up fresh gains towards the 102.70/75 area.
The anticipated corrective pullback is now underway, as daily studies extend lower, with a break below congestion around 101.00 opening up the 100.41 low of 16 February. A further break cannot be ruled out, as momentum studies and the Tension Indicator continue to weaken, but critical support at the 99.23 monthly low of 2 February and 99.27, (38.2%) Fibonacci retracement of the 2016-2017 rally should underpin immediate tests.
If broken, however, a deeper reaction will be confirmed, as the January bear trend gains traction and investors move to a negative stance.
An unexpected close above 102.26 is needed to confirm further USD gains, and open up fresh gains towards the 102.70/75 area.