FxWirePro: DXY trades below 21- day MA, dip till 97.85 likely
Major Support- 98.75
US Dollar has lost more than 50 pips after showing a minor jump till 99.16. The Fed minutes show that there was a difference in policymakers regarding rate cut with some supporting for it and others not convinced due to trade tension. According to the CME Fed watch monitor tool, the probability of a 25 bps rate cut has increased from 80% a day ago to85%, the chance of keeping rates on hold declined to 15% from 19.8%. It hits an intraday low of 98.66 and is currently trading around 98.73.
On the flip side, the index is trading slightly below 21- day MA and any close below targets 98.20/97.85.
The near term major resistance is around 99.40 and bullish continuation only above this level, jump till 100/100.35.
It is good to sell on rallies around 98.75-80 with SL around 99.20 for the TP of 98/97.85.
