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FxWirePro: DXY forms bearish engulfing pattern, good to sell on rallies

Ichimoku Analysis (480 min chart) Tenken-Sen- 98.70 Kijun-Sen- 98.15 US dollar index has halted its 2-month of the bullish trend and declined 25 pips from high 98.95. Fed Chairman Powell stated that the current policy is…

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FxWirePro: DXY forms bearish engulfing pattern, good to sell on rallies
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Ichimoku Analysis (480 min chart)

 

Tenken-Sen- 98.70

 

Kijun-Sen- 98.15

 

US dollar index has halted its 2-month of the bullish trend and declined 25 pips from high 98.95. Fed Chairman Powell stated that the current policy is appropriate and coronavirus will affect the global economy. Markets eye US CPI and retail sales data for further direction.

 

According to the Fed watch tool, the probability of rates to be unchanged has increased to 94.5% from 93.4%, the chance of 25 bps rate cut declined to 6.6% from 5.5%.

 

On the flip side, near term support is at 98.69 and any violation underneath will drag the index down to 98.40/97.67 (200- 8H MA).

 

The near term resistance is around 99, break beyond will take the index to next level till  99.25/99.50.

 

It is good to sell on rallies around 98.80-85 with SL around 99.25 for the TP of 97.70.

 

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