FxWirePro: DXY Daily Outlook

DXY has taken support near 55- day EMA and shown a minor jump. Overall trend is still weak as long as resistance 97.71 holds.The index has formed temporary top around 97.71 on Mar 7th 2019 and lost nearly 200 pips from that level till 95.74. It is consolidating in narrow range between 97.22 and 96.75 for four trading days.Chicago Fed President Evans said that rates to remain unchanged until autumn 2020 and there may a chance of hike if economy meets expectations. US dollar has recovered slightly after hawkish comments from Fed’s Evan.It is currently trading around 96.94.

The near term support is around 96.75 (55- day EMA) and any violation below will take the index to next level till 96.36/96. Any break below 95.74 low made on Mar 20th confirms further weakness.

On the higher side, near term resistance is at 97.20 and any break above continues to reach 97.40/97.71 high made on Mar 7 almost a double top .Any break above 97.71 confirms bullish continuation.

It is good to sell on rallies around 97.20-25 with SL around 97.52 for the TP of 96.36/96.