FxWirePro: DXY Short-term Outlook

Major Support- 97.19 (50-W MA)

US dollar index has taken support near 50- W MA and shown a minor recovery. Short term trend is still weak as long as resistance 98.40 holds. DXY was trading lower after hitting a high of 99.67 on weak US economic data which has increased hopes of a rate cut in Fed meeting tomorrow. According to the CME Fed watch tool, the chance of 25 bps cut is at 94.1%.

Technically, index faces strong support at 97-97.20 and any close below targets 96/95.14. Markets eye US CB consumer confidence for further direction.

On the higher side, near term resistance is around 98 and the break above will take the index to next level till 98.40/99. Major trend continuation only above 99.65.

It is good to sell on rallies around 98.15-20 with SL around 98.60 for the TP of 97/96.