The USDX still is bullish in the medium term, as in the Daily chart we can see that this instrument is still alive in the bullish oulook, forming a higher high pattern with a target placed at the resistance level of 94.18. The MACD indicator is already in the overbought zone and that could indicate an imminent pullback up to the support level of 91.88 to take a second “bullish breath”.
During the last session, the USDX failed to perform a breakout at the resistance level of 93.23 and because of that, the bearish pressure got more force on an intraday bias. Currently, the USDX is trying to stay above the support level of 92.55, performing a rebound, but during this week, the USDX could reach again the last session's high. Also, the 200-day moving average is pointing to the upside road.
Daily chart's resistance levels: 94.18 / 97.52
Dailychart's support levels: 91.88 / 90.28
H1 chart's resistance levels: 92.88 / 93.22
H1 chart's support levels: 93.55 / 92.05
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 92.88, take profit is at 93.22, and stop loss is at 92.55.
The material has been provided by InstaForex Company - www.instaforex.com
