FxWirePro: DXY forms shooting star pattern, dip till 96.60 likely

Candlestick pattern- Shooting star

DXY has once again lost nearly 30 pips after hitting high of 97.52. 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 was trading higher for past 3 week on account of declining bond yield and yield curve inversion.US Durable goods order declined unexpectedly and tumbled -1.6% in Feb compared to forecast of -1.1%.It is currently trading around 97.16.

The near term support is around 96.77 (20- day MA) and any violation below will take the index to next level till 96.55 (55- day EMA)/96.36.Any break below 95.74 low made on Mar 20th confirms further weakness.

On the higher side, near term resistance is at 97.40 and any break above continues to reach 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 97.35-40 with SL around 97.71 for the TP of 96.36