FxWirePro: DXY Intraday trade idea

Short term trend – Bearish

Intraday trend – Bearish

Ichimoku Analysis (1-Hour chart)

Tenken-Sen- 91.25

Kijun-Sen- 91.11

US Dollar index is trading weak for the past three weeks and has lost more than 250 pips. The upbeat market sentiment and fast vaccine rollout is dragging the index down. The slight decline in US bond yields also putting pressure on the dollar. But the surge in the number of coronavirus cases and lockdown restrictions in major countries is supporting at lower levels. Market eyes jobless claims and flash manufacturing to be released this week for further direction. The index hits an intraday high of 91.375 and is currently trading around 91.314.

The near-term resistance is around 91.40, convincing close above confirms intraday bullishness.  A jump to 91.72/92 is possible.

On the lower side, immediate support stands at 90.80, any indicative break below will take the index to 90.60/90/89.79.

Ichimoku analysis- DXY is trading slightly above 1- Hour Tenken-Sen and Kijun –Sen. Any indicative violation above 91.72 confirms further bullishness.

Indicator (1 Hour chart)

CAM indicator – bullish

Directional movement index –bullish

It is good to sell on rallies around 91.68-70 with SL around 92 for a TP of 90.