On the daily chart, the USDX continues to form a clear bullish pattern above the support level of 87.35 with range movements. The bullish outlook for this instrument is still very strong, because the USDX has not formed reverse patterns that might indicate a change in the current trend. The next target on the upside road remains the resistance level of 88.63. The MACD indicator is entering the overbought zone.
Dailychart's resistance levels: 88.63 / 90.40
Dailychart's support levels: 87.35 / 86.20
The USDX made a strong bullish rebound to the support level of 87.28. Now, this instrument is consolidating above the 87.86 level with the formation of a higher high pattern. However, if the USDX executes a breakout at the support level of 87.86, it would be expected to drop to the level of 87.58. On the H1 chart, the USDX remains above the 200 SMA.
H1 chart's resistance levels: 88.15 / 88.43
H1 chart's support levels: 87.86 / 87.58
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 88.15, take profit is at 88.43, and stop loss is at 87.87.
The material has been provided by InstaForex Company - www.instaforex.com
