Corrective USD DXY gains to remain limited
The USD DXY Index remains in the dominant bear trend from early January, but there are signs of short-term stabilisation appearing as daily studies unwind oversold areas.
A corrective bounce is possible, but any push above congestion around 101.00 is expected to find difficulty reaching the 101.73 high of 19 January, as weekly readings continue to dominate.
In the coming weeks, still further losses are looked for, with a break below the 99.12 break level targeting the 98.92, (61.8%) Fibonacci retracement of the November-January rally. Prices need to stabilise above here to keep the broad 2016 rally intact. A break, however, would turn sentiment cautious once again, and signal deeper reactions as investors reduce exposure.
A corrective bounce is possible, but any push above congestion around 101.00 is expected to find difficulty reaching the 101.73 high of 19 January, as weekly readings continue to dominate.
In the coming weeks, still further losses are looked for, with a break below the 99.12 break level targeting the 98.92, (61.8%) Fibonacci retracement of the November-January rally. Prices need to stabilise above here to keep the broad 2016 rally intact. A break, however, would turn sentiment cautious once again, and signal deeper reactions as investors reduce exposure.
