Major resistance - 97.80
DXY has shown a minor recovery till 97.69 and started to decline from that level. The overall trend is still weak as long as resistance 97.80 holds. US jobless claims declined 6000 to 212000 last week compared to a forecast of 216000 and durable goods orders fell 1.1% vs estimate of -0.5%. The weak economic data has increased hopes of further cuts by the Fed in the Oct 30th meeting. According to the CME Fed watch tool, the probability of a 25 bps rate cut increased to 93.5% from 84.4% 1- a week ago.
On the flip side, the near term major support is around 97 and any break below will drag the index down till 96.60/95.85.
The minor trend reversal can be seen only if breaks above 97.80 and any violation above targets 98.25/98.65.
It is good to sell on rallies around 97.65-70 with SL around 98 for the TP of 97.
