US Dollar Index is stuck at $98.48 on the 2 hour chart, wedged beneath the white trend line that’s been descending since the highs in April. Red 50 period MA is capping the price at $98.87, meanwhile the blue support line is holding firm at $98.22. The last few candles have been trying to make a little comeback with a small bullish hammer form at the $98.00 floor, but even that didn’t quite have the strength to clear the $98.87 barrier.
The whole price action is consistent with lower highs and the RSI is pretty much stuck in neutral at 52, not really showing any clear direction. There’s a Fib retracement from that May swing low that’s targeting the $99.00- $99.33 cluster area. Meanwhile volume profile is pointing towards $98.50 as the immediate pivot point.
Trade Idea: Buy at $98.45 and aim for $99.00. Stop loss at $98.10.
