On the daily chart, the USDX continues to consolidate in the bullish trend above the support level of 88.63, aiming to reach the resistance level of 90.40 in the medium term. That goal is likely to be achieved, because the USDX still has enough bullish momentum to climb to that resistance level. However, one can not rule out a retracement to the 88.63 level. The MACD indicator is moving into the positive territory.
Dailychart's resistance levels: 90.40 / 93.44
Dailychart's support levels: 88.63 / 87.35
The USDX is forming a higher low pattern above the support level of 89.25, after this instrument has reached new high levels over the past week. The resistance level of 89.51 could have a breakout. Therefore, the USDX would rise to the level of 89.76, which would be another historical high level. The MACD indicator is entering the overbought area.
H1 chart's resistance levels: 89.51 / 89.76
H1 chart's support levels: 89.25 / 88.99
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 89.51, take profit is at 89.76, and stop loss is at 89.25.
The material has been provided by InstaForex Company - www.instaforex.com
