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FxWirePro: US Dollar index Weekly Outlook
Major Support- 98
DXY has taken support near 55-day EMA and shown a minor jump till 98.31. The index is trading lower for the past 2 days and lost more than 100 pips from minor top 99.10. Previously it made a high of 99.35 and declined till 97.86 (almost a double bottom). The escalation of geopolitical tension in the Middle East after the attack on the drone in Saudi is supporting the dollar at lower levels. It is currently trading around 98.23.
Market eye Fed monetary policy meeting on Wednesday for further direction and the chance of 25 bps rate cut has declined from 94.6% 1- a week ago to 84.2%.
On the flip side near term, major support is around 97.86 and any major weakness only below that level, a dip til 97.40/97 is possible.
The near term resistance is around 98.55 and any violation above targets 99.10/99.35.
It is good to buy on dips around 98.15-20 with SL around 97.85 for the TP of 99.30.