Major support- 97 (200 day MA)
US dollar index is trading higher for second consecutive days and jumped more than 30 pips from yesterday's low of 98. The index was one of the best performers this week and jumped more than 90 pips on ongoing US-China trade war escalation. It has formed a double bottom around 97 levels and shown good recovery. It hits an intraday high of 98.32 and is currently trading around 98.29.
Short- term trend is bullish as long as support 97 holds. The index is trading near trend line resistance at 98.35 and any convincing break above will take the index till 98.93 high made on Aug 1st. The near term major resistance is around 98.53. The decline from 103.65 will stop at 88.25 only if the index breaks above 99.30 (trend line resistance).
The near term support is around 97.90 (21- day MA) and any break below will drag the index down till 97.40-.55. Any daily close below 97 confirms bearish continuation.
It is good to buy on dips around 98.05-98.10 with SL around 97.55 for the TP of 99.25.
