US dollar index continues to trade higher for 3rd consecutive days and jumped more than 100 pips. The good recovery in US 10-year bond yield is a reason for dollar strong rebound.US private sector has added 291000 jobs in Jan compared to a forecast of 157000 vs 199000 in Dec (revised from 202000). US ISM services came at 55.5 in Jan, the highest level since Aug.
According to the Fed watch tool, the probability of rates to be unchanged has increased to 92.3% from 82.3% and the chance of 25 bps rate declined to 7.7% from 17.7%.
On the flip side, near term support is at 97.70 and any violation underneath will drag the index down till 97.30/97.
The index is holding up 98 and a break beyond 98.60 confirms bullish continuation, a jump 99/99.25 likely.
It is good to buy on dips around 98.10-15 with SL around 97.70 for the TP of 99.
