Major trend line resistance - 98.55
DXY has halted its 4 days of losing streak and shown a jump of more than 50 pips from low of 97.15. The jump happened after Fed monetary policy. The central bank has kept its rates unchanged and optimistic about US growth and labor market. Fed was comfortable with current policy on weak inflation and trades got slightly upset as they are looking for hint of rate cut. It hits high of 97.73 and is currently trading around 97.65.
The near term support is around 97.05 (55- day EMA) and any violation will drag the index till 96.75. It should break below 96.75 for further weakness.
On the higher side, 97.70 will be acting as minor resistance and any indicative break above targets 98/98.33/98.55.
It is good to buy on dips around 97.20-25 with SL around 96.75 for the TP of 98.30.
