Major trend line resistance - 98.55
DXY has halted its one month of winning streak and lost more than 50 pips from high of 98.33. The index was trading higher after better than expected US GDP data. But started to decline as US dollar index is in overbought zone. US consumer spending zoomed like rocket but inflation got tamed. It hits intraday low of 97.75 and is currently trading around 97.67.
The near term support is around 97.58 (10- day MA) and any violation will drag the index till 97.34 (20- day MA)/97 (55- day EMA).It should break below 96.75 for further weakness.
On the higher side, 98 will be acting as minor resistance and any indicative break above targets 98.33/98.55.
It is good to sell on rallies around 97.80-85 with SL around 98.15 for the TP of 96.75.
