FxWirePro: DXY hits 1-month high, jump till 98.40 likely
Ichimoku Analysis (4-hours chart)
DXY trades higher and has broken major resistance 97.82 after a long consolidation. The jump was mainly due to weakness in EURUSD after dovish ECB. The index hits a high of 97.86 at the time of writing and is currently trading around 97.85.
According to the Fed watch tool, the probability of rates to be unchanged has decreased to 83.9% from 86.7% and the chance of 25 bps rate increase jumped to 16.1% from 13.3%.
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 index is trading above 97.85 and a jump till 98.25/98.60 likely.
It is good to buy on dips around 97.70 with SL around 97.30 for the TP of 98.60.