FxWirePro:DXY Short term Outlook

DXY is trading weak for 2nd consecutive week and lost more than 150 pips.US dollar is trading weak against all majors after US Fed monetary policy.Fed has kept its interest rates unchanged and pledges ‘patience’ stance on further moves.It also mentioned that they are ready to alter balance sheet if needed. According to CME Fed watch tool shows that probability of Fed to keep rates unchanged is 98.7% for 20th Mar 20 2019 ,98.7% for May 1st 2019 and 95.4% for 19th Jun 2019 Fed meeting.The dollar index hits low of 95.16 and is currently trading around 95.26.

The index has taken twice support near 55-W EMA and any violation below that level confirms major weakness.On the lower side, major support is around 95 (55- W EMA) and any break below targets 94.12 (38.2% fib)/93.80/93.20.

The index has retraced till 61.8% fib around 96.68 and started to decline. The near term resistance is around 95.98 (200- W MA) and any break above will take the index to next level till 96.68. The minor trend reversal only above 96.68.Major bullish continuation only above 97.75.

It is good to sell on rallies around 95.65-70 with SL around 96.70 for the TP of 93.80/93.20.