Major support- 100
Major resistance- 102
DXY gained momentum after US ISM manufacturing PMI. It hit a high of 101.85 and is currently trading around 101.83.
US ISM manufacturing PMI rose to 47.20 in Aug from 46.80 the previous month, below the forecast of 47.50.
According to the CME Fed watch tool, the probability of a 50 bpbs rate cut in Sep increased to 37% from 36% a week ago.
On the lower side, near-term support is around 101.40 and the violation below will drag the index down to 101/100.60/100/99.57/99/98. Significant resistance is around 102 and breach above targets 102.75/103.22. Overall bearish invalidation is only above 104.
Indicator (4-hour chart)
CCI (14)- Bullish
CCI (50)- Bearish
It is good to buy on dips around 101.60-62 with SL around 101.20 for a TP of 102.70.
