FxWirePro: DXY Daily Outlook

Ichimoku Analysis (Daily chart)

Tenken-Sen- 97.27

Kijun-Sen-97.07

DXY has once again declined after showing a minor jump above 200- day MA. The index declined more than 30 pips as EURUSD recovered on an upbeat German ZEW sentiment index. It came at 26.7 up from 10.7 vs forecast of 15.2, the highest level since Jul 2015. It hits a low of 97.39 at the time of writing and is currently trading around 97.42.

According to the Fed watch tool, the probability of rates to be unchanged has decreased to 83.9% from 86.7% and the chance of 25 bps rate increase jumped to 16.1% from 13.3%.

On the flip side, near term support is at 97.30 and any violation below will drag the index down till 97/96.54.

The major resistance is around 97.70 (200-day MA), any indicative break above targets 98.25/98.60.

It is good to buy on dips around 97.35-40 with SL around 97.10 for the TP of 98.60.