Major support- 97.80
US dollar index has formed an almost a triple bottom near 98 levels and shown a minor jump. The index hits high of 98.75 after the hawkish rate cut by the Fed but no follow-through buying. The focus now turned into US-China trade talks after BOJ and SNB policy lacks clarity. According to the CME Fed watch monitor tool, the chance of 25 bps rate cut increased to 55.1% from 50.8% one day ago and the probability of 50 bps declined to 44.9% from 49.2%. It hits an intraday high of 98.38 and is currently trading around 98.37.
The near term resistance is around 98.75 and any break above will take the index to high 99.10/99.35 high made on Sep 3rd, 2019. The bullish continuation can be seen only above 99.35.
On the flip side, near term support is around 97.97 (55 -day EMA) and any break below will drag the DXY to level 97.80/97. Major weakness only below 97 levels.
It is good to buy on dips around 98 with SL around 97.70 for the TP of 99.35.
