FxWirePro: DXY Short term Outlook

Ichimoku Analysis (Weekly chart)

Tenken-Sen- 91.20

Kijun-Sen- 92.95

US Dollar index is trading higher for a second consecutive week and jumped more than 100 pips on broad–based US dollar buying. The surge in new daily coronavirus cases and lockdown in the UK   dollar is supporting DXY at lower levels. US Nonfarm payroll came at -140K compared to a forecast of 60K, unemployment declined to 6.7% vs 6.8%.  The US 10-year yield surged past 1% levels, highest since Mar 2020. The yield curve widened since May 2017 from 3.6 basis point to 97.50 basis point. Short term trend on DXY is slightly bullish as long as support 89.20 holds.

On the higher side, near-term resistance is around 90.60, convincing violation above targets 90.90/91.50. Significant bullishness only if it closes above 91.50.

The index is facing strong support at 89.20; any indicative break below will take the index till 88.60/88.

It is good to buy on dips around 90.20-25 with SL around 89.80 for the TP of 91.50.