On the H4 chart, the USDX is finding support at the level of 85.06, a fairly important for the development of the trend in the medium term USDX area, as this instrument could attempt a breakout at the support level to fall to where the 200-day moving average is located. However, remember that the USDX has formed several fractals above the level of 85.50, which hinders the development of a bullish momentum in the USDX.
H4 chart's resistance levels: 86.10 – 86.75
H4chart's support levels: 85.06 – 84.52
The USDX is conducting a breakout at the support level of 85.37, the next target on the downside would be the level of 84.81. During the American session yesterday, the USDX showed a strong pullback in the 200 SMA at H1 chart and this could support our bearish outlook, because the MACD indicator is in negative territory.
H1 chart's resistance levels: 85.27 – 85.49
H1 chart's support levels: 85.03 – 84.81
Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USD Index breaks with a bearish candlestick; the support level is at 85.03, take profit is at 84.81, and stop loss is at 85.25.
The material has been provided by InstaForex Company - www.instaforex.com
