FxWirePro- DXY Daily Outlook
Major support- 100
Major resistance- 102
DXY showed a major pullback after strong data. It hit a high of 101.46 and is currently trading around 101.382.
US GDP and Initial jobless claims came above market expectations showing that the US is not in recession. This diminishes the chance of a rate cut by the Fed this Sep.
According to the CME Fed watch tool, the probability of a 50 bpbs rate cut in Sep decreased to 32.5% from 38% a day ago.
On the lower side, near-term support is around 101.20 and violation below will drag the index down to 100.60/100/99.57/99/98. Significant resistance is around 101.60, and breach above targets 102/102.75. Overall bearish invalidation is only above 103.
It is good to buy on dips around 101.20-25 with SL around 99.80 for a TP of 102.
