On the daily chart, the USDX is trying to stay in the bullish trend above the support level of 85.18. However, the USDX could find resistance at current levels and fall to the support level of 84.29, because this instrument is forming a lower low pattern. The MACD indicator remains in negative territory, which could favor the bearish bias on this chart.
Dailychart's resistance levels: 85.18 / 86.20
Dailychart's support levels: 84.29 / 83.74
The USDX is trying to form a bullish pattern below the resistance level of 85.27, because the USDX has found strong support at the 84.81 level on several occasions, but in the H1 chart, the USDX still remains below the 200-day moving average, so the bearish outlook still remains alive in the USDX. However, caution is advised because the MACD indicator is entering overbought area.
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
