FxWirePro: DXY Intraday trade idea

Short term trend – Bearish

Intraday trend –Bearish

Ichimoku Analysis (4-Hour chart)

Tenken-Sen- 96.21

Kijun-Sen- 96.37

US Dollar index is trading weak for third consecutive days despite hawkish US Fed. The central bank has doubled the taper of bond buying, expected to raise rates three times in 2022. DXY hit a high of 96.90 after Fed monetary policy. The decline in US treasury yields is dragging the US dollar down below 96 levels. It hits an intraday low of 95.85 and is currently trading around 95.949. 

The near-term resistance is around 96.25 any convincing break above confirms minor bullishness.  A jump to 96.60/96.95 is possible.  Short-term bullish continuation only if it breaks 97.

On the lower side, immediate support stands at 95.70 (200-4H MA), any indicative break below will take the index to 95.15/94.50.

Ichimoku analysis- DXY is trading below  4-hour Tenken-Sen, Kijun –Sen, and cloud.

Indicator (4 Hour chart)

CCI (50)- Bearish

Directional movement index –Bearish

It is good to sell on rallies around 96.12-15 with SL around 96.60 for a TP of 94.65.