Ichimoku Analysis (Daily chart)
Tenken-Sen- 97.14
Kijun-Sen-97.09
DXY continues to trade higher for 3rd consecutive days on strong US economic data. US housing starts surged sharply by 17% to 1.61 million compared to 1.375 million in Nov, the highest level in 13 years. The New York Fed and Philadelphia Fed rose better than expected. The index hits a high of 97.73 at the time of writing and is currently trading around 97.69.
According to the Fed watch tool, the probability of rates to be unchanged has decreased to 86.7% from 83.9% and the chance of 25 bps rate increase jumped to 16.1% from 14.4%.
On the flip side, near term support is at 97.30 and any violation below will drag the index down till 97/96.54.
The major resistance is around 97.70 (200-day MA), any indicative break above targets 98.25/98.60.
It is good to buy on dips around 97.45-50 with SL around 97.10 for the TP of 98.60.
