FxWirePro: DXY faces strong support around 97 levels, good to sell on rallies

US dollar index has taken support near 97 levels and shown a minor jump. But the short-term trend is still weak as long as resistance 98.33.  The index is trading weak despite slight better than expected US nonfarm payroll. US Non-Farm payroll rose 128000 in Oct compared to the estimate of 89000, the unemployment rate ticked up to 3.6% and average hourly earnings came at 0.3% vs forecast of 0.0%. The hopes of the US-China signing deal by this month is also putting pressure on DXY.

The near term major resistance is at 97.40-45 (200- day MA), any convincing move above that level targets 97.80/98.25-33. The bullish continuation can be seen only above 99.67.

The index is struggling to break below 97 levels for the past 2 weeks and break under 97 confirms further weakness, a dip till 96/95.85 possible.

It is good to sell on rallies around 97.55-60 with SL around 98 for the TP of 96.