DXY consolidates in narrow range, minor bullishness only above 97.60

DXY consolidates in a narrow range, minor bullishness only above 97.60

Ichimoku Analysis (1-hour chart)

Tenken-Sen- 97.42

Kijun-Sen-97.24

DXY is trading in a narrow range between 97.58 and 97.30 for the past 3 trading days. The minor jump in us US dollar index was due to strong USDJPY which constitutes 13.5%. It hits a high of 97.47 at the time of writing and is currently trading around 97.45.

According to the Fed watch tool, the probability of rates to be unchanged has decreased to 87.3% from 90% and the chance of 25 bps rate increase jumped to 12.7% from 10%.

On the flip side, near term support is at 97.30 and any violation below will drag the index down till 97/96.54. 

The major resistance is around 97.60, any indicative break above targets 97.85/98.25/98.60.

It is good to buy on dips around 97.35-40 with SL around 97.14 for the TP of 97.85.