Major Intraday support- 99.20 (23.6% fib)
US dollar index continues to trade higher for 5th consecutive days and hits a fresh 28-month high. It hits a high of 99.59 and is currently trading around 99.59.
It has formed a minor bottom of around 97.85 and any major weakness only below 97.86. According to the CME Fed watch tool, the chance of keeping rates unchanged rose to 61% from 35% 1-week ago and the probability of 25 bps cut declined to 39% from 64%.
The near term resistance is around 99.60 and any break above targets100/100.30.Markets eye US ISM manufacturing index for further direction.
On the flip side, near term support is around 99.20 and any break below will drag the DXY to level 98.80/98.65/98.40. 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.
