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FxWirePro: DXY upside capped by 21- EMA, good to sell on rallies

  • US Dollar index upside capped by 21 EMA and shown a minor decline from that level. It is currently trading around 97.15.
     
  • Short term trend is still weak as long as index not able to break above 98.29 (23.6% fibo). The index has shown a huge decline from the high 103.82 and downside capped by 61.8% fibo at 96.40 and bearish continuation can be seen below that level.
     
  • The near term resistance is around 97.50 (21 E MA) and any close above will take the index till 97.78/98.29 (23.6% retracement of 103.82 and 96.52)/98.60 (support turned into resistance).
     
  • On the lower side, major near term support is around 96.40 (61.8% fibo) and any break below will drag the index till 95.91 (Nov 9th 2016 low)/95.

It is good to sell on rallies around 97.20-97.25 with SL around 97.78 for the TP of 96.40/95.91.

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