Daily chart: The USDX is trying to make a breakout on the resistance level of 85.18 and now the USDX is forming a bullish pattern. If successful, it is expected to rise to the resistance level of 86.20, that would be a strong bullish consolidation in the long term for this instrument. The MACD indicator is entering overbought area.
H4 chart: The USDX has made a rebound on the support level of 84.52, so far, the USDX is trying to break out the resistance level of 85.06. If successful, the next target would be the 86.25 level, where the bullish trend line is. However, the USDX could make a pullback at current levels. The MACD indicator remains in positive territory.
H1 chart: The USDX is forming a higher high pattern above the support level of 84.81. If the USDX manages to consolidate above the 85.03 level, the next target would be the resistance level of 85.27, but we must remember that the USDX is overbought in this chart. The MACD indicator remains in positive territory.
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 85.03, take profit is at 85.27, and stop loss is at 84.81.
The material has been provided by InstaForex Company - www.instaforex.com
