FxWirePro: US Dollar Index hits 9-week high, jump till 99.25 likely

US dollar index continues to trade higher and hits 9- week high on broad-based dollar buying. The good recovery in US 10-year bond yield and upbeat economic data is supporting DXY at lower levels. Markets eye United States  Non -Farm payroll for further direction.

US economy is expected to add 160000 jobs in Jan compared to 145000 increase in Dec, the unemployment to be stable at 3.5%. Hourly earnings to gain 0.3% vs 0.1% in Dec.

According to the Fed watch tool, the probability of rates to be unchanged has increased to 90% from 73.4%, the chance of 25 bps rate cut declined to 10% from 26.6%.

On the flip side, near term support is at 98.40 and any violation underneath will drag the index down till 98/97.70 (200- day MA).

The index has broken significant resistance at 98.54 high made on Nov 29th, 2019 and confirms important bullish continuation, a jump till 99.25/99.50.

It is good to buy on dips around 98.40 with SL around 98.20 for the TP of 99/99.25.