The USDX continues to recover above the support level of 85.18, as this instrument is trying to finish forming a bullish pattern that has been developing for several days. On the upside, the USDX may find resistance at the level of 86.20, as the USDX formed a fractal above that level. The USDX is far from the 200 SMA and the MACD indicator is moving into negative territory.
Dailychart's resistance levels: 86.20 – 87.35
Dailychart's support levels: 85.18 – 84.29
As we can see in the H1 chart, the USDX is consolidating back above the support level of 85.73, where the 200 SMA is located. The USDX formed a fractal at the resistance level of 85.95 so far, this instrument may enter in a phase of consolidation in the short term. The MACD indicator is entering overbought area.
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 85.95, take profit is at 86.17, and stop loss is at 85.73.
The material has been provided by InstaForex Company - www.instaforex.com
