The USDX performed a pullback near to the 86.20 level so that corrective movements in this instrument could be extended to the support level of 85.18. A consolidation below this level could lead the USDX to fall to the support level of 84.29, which would help the USDX to fall to the support level of 82.51 in the medium term. Remember that the USDX formed a fractal at the level of 86.20.
Daily chart's resistance levels: 86.20 – 87.35
Daily chart's support levels: 85.18 – 84.29
In the H1 chart, the USDX achieved consolidation below the 85.73 level, finding support at the level of 85.49. The resistance level of 87.16 is quite strong, so USDX is trying to make a breakout in the support level of 85.29 to fall to the level of 85.27 which is below the 200 SMA. MACD indicator is entering neutral territory, which would be a sign that the USDX would be entering a phase of consolidation.
H1 chart's resistance levels: 85.95 – 86.17
H1 chart's support levels: 85.73 – 85.49
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 85.73 take profit is at 85.95, and stop loss is at 85.51.
The material has been provided by InstaForex Company - www.instaforex.com
