Ichimoku Analysis (Daily chart)
Tenken-Sen- 89.96
Kijun-Sen- 90.18
US Dollar index continues to trade higher for third consecutive days despite weak US retail sales data. It came at -1.4%in Dec compared to the forecast of -0.1%. US Empire state manufacturing index declined to 3.5 in Jan vs 6 expected. The US 10-year yield lost nearly 10% after hitting a multi-month high of 1.184%. The yield curve widened since May 2017 from 3.6 basis point to 96.20 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 to 89.60/89.20.
It is good to buy on dips around 90.25-30 with SL around 89.80 for the TP of 91.50.
