FxWirePro: DXY faces strong support at 97.80, break below targets 97
Ichimoku Analysis (4-hour chart)
US Dollar index continues to trade weak for 4th consecutive days and lost more than 200 pips till 97.81. The decline was mainly due to weak US economic data released the previous month. US Durable goods orders plunged sharply to -17.2% in Apr, most since Aug2014. The number of people filed for unemployment claims came at 2123K in the previous week, the lowest level since the corona pandemic. US personal spending declined to record 16% in Apr MOM as the savings rate increased by 33%.
On the flipside, near-term support is around 97.80 (200- day MA), and any violation below targets 97.45/97/96.35. Major bearishness only if it breaks 96.35.
The immediate resistance is around 98.57 (200- day EMA), an indicative close above will take the index till 99.05/99.35/99.78. Any breaks above 100 confirm bearish reversal and jump till 100.87/101.20 likely.
It is good to sell on rallies around 98.35-40 with SL around 199 for TP of 97.