US Dollar Index Trade Idea

US Dollar Index Trade Idea

19 May 2016, 14:28
Roberto Jacobs

US Dollar Index Trade Idea

  • Major resistance- 95.20 (Apr 14th 2016) 
  • Major support – 94.10 (21 day MA) 
  • US Dollar index has surged overnight on the modestly hawkish FOMC minutes increased hopes of rate hike in June. 
  • Fed fund futures shows that investors also pushed the odds of June rate hike to 34% sharply for 4% this week. 
  • DXY breach of 95.19 confirms minor trend reversal .Break above 95.20 will take the index till 95.85/96.40. 
  • On the lower side minor support 94.70 (4H Kijun-Sen) and any break below targets  94.10 (21 day MA)/93.60.

It is good to buy at dips around 94.70 with SL around 95.85/96.40.

Resistance: R1-95.20,  R2-95.85, R3-96.40

Support: S1-94.70, S2-94.10, S3-93.60

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