FxWirePro: DXY Daily Outlook
DXY is trading weak for past 6 days and lost more than 150 pips on weak economic data and easing of geopolitical tension is putting pressure on US dollar. Euro jumped against all majors after EU and UK have agreed for a new Brexit deal. US retails sales and Philly fed manufacturing index data came this week was much weaker than expected. The index hits a low of 97.50 and shown a minor recovery till . The weakness in US retail sales has increased the chance of rate cuts by the Fed. Markets eye US Philly fed manufacturing for further direction.
The near- term support is around 97.50 and any violation below will drag the index down till 97.20/96.65 is possible.
On the higher side, major intraday resistance is around 97.85 and any break above targets 98.25/98.70. Minor trend reversal possible only above 98.70.
It is good to sell on rallies around 97.80-85 with SL around 98.20 for the TP of 96.75.