Major support- 100
Major resistance- 102
DXY has consolidated in a narrow range between 101.91 and 100.58 for the past week. It hit a high of 101.76 at the time of writing and is currently trading around 101.693.
Market eyes on US CPI data tomorrow for further direction.
According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in Sep increased to 71% from 62% a week ago.
On the lower side, near-term support is around 101.50 and the violation below will drag the index down to 101.20/100.60/100/99.57/99/98. Significant resistance is around 102 and breach above targets 102.75/103.22. Overall bearish invalidation is only above 104.
Indicator (4-hour chart)
CCI (14)- Bullish
CCI (50)- Bullish
It is good to sell on rallies around 101.78-80 with SL around 102.40 for a TP of 100.
