FxWirePro: Sell US dollar Index on rallies

Major resistance- 99.40

US Dollar has taken support near 21- day MA and shown a recovery of more than 50 pips. Fed Chairman said in a speech yesterday that the central bank is open for another rate cut later this month. According to the CME Fed watch monitor tool, the probability of a 25 bps rate cut has increased from 77% a week ago to 83.9% and the chance of keeping rates on hold declined to 16.1% from 23%. It hits a high of 99.25 and is currently trading around 99.12.

On the flip side, near term support is around 98.60 and minor weakness below that level. Any violation below targets 98.20/98.

The near term major resistance is around 99.40 and bullish continuation only above this level, jump till 100/100.35.

It is good to sell on rallies around 99.15-20 with SL around 99.50 for the TP of 98.60/98.