Ichimoku analysis (Daily chart)
Tenken-Sen- 98.94
Kijun-Sen- 98.63
US dollar index continues to trade lower for past 1-week and lost more than 200 pips. The decline in the US dollar was due to hopes of rate cut by the Fed. The index hits an intraday low of 97.64 and is currently trading around 97.57.
According to the CME FedWatch tool, the probability of 50 bps rate cut increased to 100% from 94.9% and 25 bps cut decreased to 0% from 5.1%.
On the flip side, immediate support is around 97.47 (61.8% fib) and any violation below will drag the DXY down till 97.20/97.
The near term resistance is at 97.86, any indicative break above targets 98.05/98.60.
It is good to sell on rallies around 97.70-75 with SL around 98 for the TP of 97.
