DXY to post a limited corrective pullback
The anticipated break higher has been seen, with the USD index reaching 103.65.
A corrective pullback is now highlighted, however, as overbought momentum studies unwind, with a break below the 101.80 retracement opening up congestion around 101.00 and the 100.70 retracement.
Still deeper reactions cannot be ruled out, but critical support within 99.43/75 should underpin any 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 minor setbacks, fresh USD gains are looked for, with a close above the 103.65 year high of December 2016 opening up historic congestion around 105.00 as the May 2016 rally extends.
A corrective pullback is now highlighted, however, as overbought momentum studies unwind, with a break below the 101.80 retracement opening up congestion around 101.00 and the 100.70 retracement.
Still deeper reactions cannot be ruled out, but critical support within 99.43/75 should underpin any 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 minor setbacks, fresh USD gains are looked for, with a close above the 103.65 year high of December 2016 opening up historic congestion around 105.00 as the May 2016 rally extends.
