DXY has once again shown a recovery after minor consolidation between 97.34 and 97.08. It has broken yesterday’s high of 97.34 and jumped till 97.46.The index was trading higher for past 10 days and jumped more than 150 pips from low of 95.75. US ISM manufacturing data came at 55.8 an increase of 1.1% from 54.2 but retail sales declined by 0.2% compared to forecast of +0.2%.It is currently trading around 97.37.
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
