Major support- 97.80
US dollar index has once gained sharply hitting a low of 98.29. It has formed an almost a triple bottom near 98 levels. The index broken 98.85 high made on Sep 23rd. Political uncertainty in the US is supporting safe-haven USD. According to the CME Fed watch monitor tool, the chance of 25 bps rate cut increased to 35.9% from 46.6% one day ago and the probability of 50 bps declined to 53.4% from 64.4%. It hits an intraday high of 98.99 and is currently trading around 98.99.
The near term resistance is around 99.10 and any break above will take the index to high 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 98.40 (21 -day MA) and any break below will drag the DXY to level 98/97.80/97. Major weakness only below 97 levels.
It is good to buy on dips around 98.75-80 with SL around 98.40 for the TP of 99.35/100.
