The USDX has reached the level of 86.01, where this instrument has a fractal formed as part of the development of the current higher high pattern. However, the USDX is trying to make a breakout at the level of 86.40 to move up to the resistance level of 86.75. But we should have caution because the USDX could make a breakout at the support level of 86.01, so you can resume later the bearish trend in the H4 chart. The MACD indicator is entering the overbought area.
H4 chart's resistance levels: 86.75 / 87.00
H4chart's support levels: 86.01 / 85.06
On the H1 chart, the USDX was able to touch the resistance level of 86.40, but quickly, this instrument made a pullback to that area. Now, this pattern is forming a lower low below the resistance level of 86.17. However, the USDX would be performing corrective movements in favor of the current bullish trend in this instrument, but there is still the possibility that the USDX tries a breakout at the support level of 85.95 and falling to the level of 85.93. The MACD indicator remains in the negative territory.
H1 chart's resistance levels: 86.17 / 86.40
H1 chart's support levels: 85.95 / 85.73
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 85.27, take profit is at 85.03, and stop loss is at 85.49.
The material has been provided by InstaForex Company - www.instaforex.com
