FxWirePro: DXY Intraday trade idea

Short term trend – Bullish

Intraday trend –Bearish

Chart pattern- bearish divergence

Ichimoku Analysis (4-Hour chart)

Tenken-Sen- 98.60

Kijun-Sen- 98.07

The US Dollar index performed well this month and surged nearly 200 pips from a low of 97.68. The index halted its bullish trend and showed a minor profit booking. Markets eagerly await US Fed meeting minutes for further direction. The US 10-year yield hits a fresh year high in hopes of an aggressive rate hike by Fed. It hits an intraday low of 99.37 and is currently trading around 99.41. 

The near-term resistance is around 100 any convincing break above confirms further bullishness.  A jump to 102/103 is possible.  Short-term bullish continuation only if it breaks 103.

On the lower side, immediate support stands at 99.25, any indicative break below will take the index to 98.67/98.

Indicator (Daily chart)

CCI (50)- Bullish

Directional movement index –Bullish

It is good to sell on rallies around 99.50-52 with SL around 100 for a TP of 98.