US dollar index trades lower for the past one week after forming minor top around 98.45. The minor trend is on the downside, as long as resistance 98.60 holds. It hits high of 99.67 on Oct 1st, 2019 and started to decline sharply till 97.20. It is currently trading around 97.92.
The Fed minutes gave a clear indication that the central bank is to follow the wait and watch approach in the coming months. The CME Fed Watch tool shows the chance of the Fed to keep rates on hold is high till Jun 2020.
Technically, near-term support is around 97.60, any indicative break below will drag the DXY down till 97-97.20. Major bearish continuation only below 97.
The near-term resistance is around 98.20, break above targets 98.60/99. The major trend reversal only above 99.65.
It is good to sell on rallies around 98.10-15 with SL around 98.60 for the TP of 97.
