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 FxWirePro: DXY upside capped by 50% fib, good to buy on dips

Ichimoku analysis (Daily chart)

Tenken-Sen -94.59

Kijun-Sen - 94.77

Overall trend: Slightly bullish.

DXY has recovered sharply more than 150 pips from low of 93.84 in previous week.The index has broken major resistance at 94.68 (100- day MA) and jumped till 95.37. The next near term resistance is around 95.40 (50% fib) and any break above targets 95.75/ 96.25.

On the lower side, near term support is around 94.65 (100- day MA) and any break below will drag the pair to 94/93.70. DXY should break below 93.70 for further weakness.

It is good to buy on dips around 94.60-65 with SL around 94.20 for the TP of 95.75/96.25.

 

 

 

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