On the H4 chart, the USDX has had a fairly strong bearish trend for several days, as this instrument is currently finding support at the 88.27 level. This area could serve as a strong support for the USDX, but remember that this instrument could be looking down to the support level of 87.93, which would be an approximation to the 200-day moving average. The MACD indicator remains in the negative territory.
Daily chart's resistance levels: 88.44 / 88.65
Dailychart's support levels: 88.19 / 87.93
The USDX found strong resistance at the 88.71 level, where the 200-day moving average is located on the H1 chart. Now, the USDX is trying to form a lower low pattern below the resistance level of 88.43. The nearest support is the level of 88.15 and if the USDX makes a breakout there, it would be expected to fall to the level of 87.86. The MACD indicator remains in the negative territory.
H1 chart's resistance levels: 88.43 / 88.71
H1 chart's support levels: 88.15 / 87.86
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 88.43, take profit is at 88.71, and stop loss is at 88.14.
The material has been provided by InstaForex Company - www.instaforex.com
