DXY: 2-way trades are likely for now – OCBC

US Dollar (USD) traded subdued overnight in absence of key data. DXY last seen at 98.38 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Mild bullish momentum on daily chart intact

"On Fedspeaks, Schmid said officials need to keep pressing against inflation, which has remained stubbornly high. He reiterated that rates are only “slightly restrictive,” which he said is appropriate. He also suggested the Fed may not need to lower rates again in the near term, with inflation still running too high. Focus tonight on Bostic, Bowman, Miran and Kashkari."

"Mild bullish momentum on daily chart intact while RSI rose. 2-way trades likely. Resistance at 98.40 levels (38.2% fibo retracement of May high to Sep low) and 99 levels (50% fibo). Support at 97.60 (21 DMA, 23.6% fibo), 97.20."