The USDX is consolidating below the bullish trend line at the level of 87.65. This instrument is likely to fall to the support level of 87.35. However, in the present territory where the USDX is moving, it is a very crowded area which could cause irregular movements in the USDX. The MACD indicator is entering the negative territory, so the USDX could extend the fall to the level of 87.00.
H4chart's resistance levels: 87.93 / 88.19
H4chart's support levels: 87.35 / 87.00
On the H1 chart, the USDX fell far to the 200-day moving average, because this instrument is making a bearish retracement in an effort to keep the overall bullish trend. If the USDX finds dynamic support at the current levels, the next target would be the support level of 87.86. The MACD indicator is in the oversold zone.
H1 chart's resistance levels: 87.86 / 88.15
H1 chart's support levels: 87.58 / 87.28
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 87.86, take profit is at 88.15, and stop loss is at 87.57.
The material has been provided by InstaForex Company - www.instaforex.com
