Ichimoku Analysis (Hourly chart)
Tenken-Sen- 90.04
Kijun-Sen- 90.23
US Dollar index has lost more than 100 pips from a minor top 90.72. the slight decline in US 10-year yield due to short covering putting pressure on the US dollar at higher levels. Markets eye US CPI, new bond auction, and coronavirus news for further direction. The US 10-year yield hits a 10-month high at 1.18% and is currently trading around 1.116%. The yield curve widened since May 2017 from 3.6 basis point to 96.50 basis point. The intraday trend on DXY is slightly bullish as long as support 89.80 holds.
On the higher side, near-term resistance is around 90.75, convincing violation above targets 91/91.50. Significant bullishness only if it closes above 91.50.
The index is facing strong support at 89.80; any indicative break below will take the index till 89.60/89.20.
It is good to buy on dips around 90.10-15 with SL around 89.75 for the TP of 91.50.
