Major support- 97.80
US dollar index has recovered yesterday after showing a minor decline to 98.83. It hits a high of 99.26 and is currently trading around 99.14. The index has form almost a triple top around 99.10-99.35. US Core Durable goods orders m/m rose 0.5% compared to forecast of 0.2% while new orders for the key US-made capital goods has fallen sharply by 0.2%. Core PCE index m/m came at 0.2% compared to forecast of 0.1%.It hits an intraday low of 99.06 and is currently trading around 99.15.
The near term resistance is around 99.35 high made on Sep 3rd, 2019 and any break above confirms bullish continuation. Any break above targets 99.60/100.
On the flip side, near term support is around 98.80-90 and any break below will drag the DXY to level 98.40/98/97.80/97. Major weakness only below 97 levels.
It is good to buy on dips around 98.85-90 with SL around 98.60 for the TP of 99.35/100.
