Major Support- 98-98.20
US dollar index has taken support near the trend line and shown a minor recovery. It hits a high of 98.53 and is currently trading around 98.47. DXY was trading weak for the past two weeks and lost more than 150 pips on weak US economic data.
According to the CME Fed watch tool, the probability of a 25 bps rate cut has increased from 67.3% to 74.8% and the chance of keeping unchanged declined to 24.6% from 32.7%.
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.
