Daily chart: The USDX has made a successful breakout at the resistance level of 89.29, after it formed a higher high pattern. Now, it is very likely that the USDX will rise to the level of 85.18 in the medium term. However, the USDX could begin to perform corrective movements in this chart. The MACD indicator is in overbought zone.
H4 chart: The USDX has consolidated its position above the level of 84.52 and now, the USDX is trying to climb up to the resistance level of 85.06. If the USDX manages to make a breakout at that level, it would be expected to rise to the level of 85.85, where a bullish trend line is located. The MACD indicator is in positive territory.
H1 chart: The USDX has had a bullish momentum above the 200-day moving average, so now, the USDX is forming a higher high pattern above the support level of 84.60. If the USDX manages to make a breakout at the resistance level of 84.81, it is expected to that rise to the level of 85.05. The MACD indicator is entering overbought area.
Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USD Index breaks with a bullish candlestick; the resistance level is at 84.81, take profit is at 85.05, and stop loss is at 84.60.
The material has been provided by InstaForex Company - www.instaforex.com
