Chart Pattern: Double top
Major support - 94.85--94.90 (200- day MA and 300- day EMA)
DXY has formed double top around 97.70-75 and started to decline more than 250 pips from that level. The index hits low of 95.02 and is currently trading around 95.32.
The momentum indicator like RSI shows that DXY is nearing oversold zone and a slight jump till 95.98 (100- day MA) is possible. Any violation above 95.98 targets 96.30 (55- day EMA)/96.96.
On the lower side major support is around 94.85-94.90 and any daily close below confirms bearish continuation and a decline till 94.35 (trend line support)/93.80 is likely.
It is good to sell on rallies around 95.95-96 with SL around 97 for the TP of 94.35/93.80.
