Major Support- 98-98.20
US dollar index has once taken support near the trend line and shown a minor recovery. It hits a high of 98.58 and is currently trading around 98.52. DXY formed a temporary top around 99.67 and declined nearly 150 pips from that level. Markets eye US retail sales data for further direction.
According to the CME Fed watch tool, the probability of a 25 bps rate cut has declined from 83.4% to 72.7% and the chance of keeping unchanged increased to 27.3% from 27.8%.
On the flip side, major support is around 98.20 and any break below will take the index till 97.85/97.40.
The near term intraday resistance is around 98.60 and any violation targets 99/99.25. It should break above 99.70 for bullish continuation.
It is good to buy on dips around 98.20-25 with SL around 97.80 for the TP of 99.
