US dollar index has once declined sharply after showing a minor till 97.37.The index hits low of 96.75 yesterday and shown a good recovery from that level. Overall trend is weak as long as resistance 97.40 holds. The decline was mainly due to weak ADP employment data and rate cut hopes.The inverted yield curve showing chances of recession in US. The index hits intraday low of 96.89 and is currently trading around 96.89.
The near term major support is around 96.75 and any convincing break below confirms weakness a decline till 96.42/95.95 likely.
On the higher side, major resistance is around 97.42 (55-- day EMA) and any break above will take the index to next level till 97.80/98/98.25.
It is good to sell on rallies around 97.05-10 with SL around 97.40 for the TP of 95.95.
