Ichimoku Analysis (4-Hour chart)
Tenken-Sen- 99.41
Kijun-Sen- 99.10
DXY tumbled below 100 levels on profit booking. The minor correction in US treasury yields is putting pressure on the US dollar at higher levels. Markets eye US retail sales, Initial jobless claims for further direction. It hits a high of 100.52 and is currently trading around 99.62.
The producer price index jumped 11.2% from a year ago, while monthly prices increased to 1.4% in Mar, the biggest gain since Mar 2010.
According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in May increased to 87%.
Technically, near-term support is at 99.60, and any break below targets 99/98.Major trend continuation only below 97.60.
On the higher side, immediate resistance stands around 100 and the indicative break above will take the index to 100.52 (yesterday's high). Significant bullish continuation only if it breaks 100.55.
It is good to sell on rallies around 99.70-72 with SL around 100.52 for the TP of 97.65.
