Ichimoku Analysis (4-hour chart)
Tenken-Sen- 97.08
Kijun-Sen-96.95
DXY is trading higher for past 1-week and jumped more than 100 pips from low of 97.41. the jump was due to a slight increase in Safe-haven demand on US-Iran tension and better than expected US ISM services and ADP employment data. The index hits high of 97.50 at the time of writing and is currently trading around 97.41.
According to the Fed watch tool, the probability of rates to be unchanged has decreased to 90.6% from 95.6% and the chance of 25 bps rate cut jumped to 9.4% from 4.4%.
On the flip side, near term support is at 97.33 (200-4H EMA) and any violation below will drag the index down till 97.14/97/96.54.
The major resistance is around 97.85 and any indicative break above targets 98.25/98.60.
It is good to buy on dips around 97.35-40 with SL around 97.14 for the TP of 97.85.
