Chart pattern- Bullish divergence (Weekly chart)
Ichimoku Analysis (Weekly chart)
Tenken-Sen- 91.90
Kijun-Sen- 93.35
US Dollar index is trading weak for the past ten-week and lost more than 5.50% on the broad-based US dollar. US Nonfarm payroll came at -140K compared to a forecast of 60K, unemployment declined to 6.7% vs 6.8%. But a surge in coronavirus cases in Germany and the UK is supporting the US dollar index at lower levels. The US 10-year yield surged past 1% levels, highest since Mar 2020 on more stimulus hopes. Short term trend on DXY is slightly bullish as long as support 89.20 holds.
On the higher side, near-term resistance is around 90.20, convincing violation above targets 90.65/90.90. Significant bullishness only if it closes above 91.50.
The index is facing strong support at 89.20; any indicative break below will take the index till 88.60/88.
It is good to buy on dips around 89.55-60 with SL around 89.20 for the TP of 90.60.
