- Upbeat employment report failed to buoy the dollar index and wage pressure remained subdued.
- Further, pressure remains on continued trade tensions between US and China as tariffs kick in from both countries.
- DXY is extending weakness. down 0.14% on the day, scope for further weakness.
- We see 'Double Top' formation (95.53) and 'Bearish Divergence' on RSI and Stochs on daily charts which raises scope for further weakness.
- The index has broken below 50-DMA at 93.90 and is currently hovering around 23.6% Fib at 83.81.
- Next major support lies at 55-EMA at 93.56 ahead of 38.2% Fib at 92.75 and 200-DMA at 92.23.
- On the flipside, 21-EMA at 94.37 is major resistance. Retrace above could negate bearish bias.
Support levels - 93.56 (55-EMA), 93, 92.80 (110-EMA)
Resistance levels - 94, 94.26 (5-DMA), 94.37 (21-EMA)
Recommendation: Good to go short on upticks around 93.90/ 94, SL: 94.40, TP: 93.55/ 93/ 92.80
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -101.158 (Bearish) at 1045 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
