Major support- 98.95 (23.6% fib)
US dollar index has recovered after a minor dip till 98.95 yesterday. The index is trading higher on weak EURUSD which hits a 2-year low. It hits an intraday high of 99.25 and is currently trading around 99.22.
It has formed a minor bottom around 97.85 and shown a nice recovery of more than 130 pips. According to the CME Fed watch tool, the chance of keeping rates unchanged rose to 55.8% from 50% and the probability of 25 bps cut declined to 44.4% from 49.2%.
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 98.95 and any break below will drag the DXY to level 98.65/98.40. Major weakness only below 98 levels.
It is good to buy on dips around 98.85-90 with SL around 98.60 for the TP of 99.35/100.
