Corrective USD DXY Index pullback underway
The anticipated corrective pullback is developing, as momentum studies continue to weaken and the bullish Tension Indicator, not shown, unwinds.
The break of the 100.80, (38.2%) retracement of the Nov-Jan rally is opening up critical support within 99.43/85, but this area is expected to underpin immediate tests, as background studies continue to improve and investors maintain a buy-into-weakness strategy.
A break, however, would negate higher levels as investors subsequently move to a cautious stance.
Following a corrective setback, fresh USD gains are looked for, with a close above the 103.82 high of 3 January opening up historic congestion around 105.00 as the May 2016 rally extends.
The break of the 100.80, (38.2%) retracement of the Nov-Jan rally is opening up critical support within 99.43/85, but this area is expected to underpin immediate tests, as background studies continue to improve and investors maintain a buy-into-weakness strategy.
A break, however, would negate higher levels as investors subsequently move to a cautious stance.
Following a corrective setback, fresh USD gains are looked for, with a close above the 103.82 high of 3 January opening up historic congestion around 105.00 as the May 2016 rally extends.
