On the daily chart, the price action at the USDX is still winning favor with bulls, as this instrument is looking to perform a medium term consolidation above the support level of 94.18. The next target could be the resistance level of 95.45, which is the last significant high that the USDX reached last weeks. The MACD indicator is still on the negative territory.
During the last session, the USDX found strong resistance at the level of 94.87, where this instrument performed a pullback until the support level of 94.38. It should be noted that the USDX is looking to build a solid bullish road in the near term, fact that is favored by the bullish 200 SMA and the higher high pattern that is currently forming this instrument.
Daily chart's resistance levels: 95.45 / 96.78
Dailychart's support levels: 94.18 / 93.02
H1 chart's resistance levels: 94.87 / 95.16
H1 chart's support levels: 94.38 / 93.94
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 94.87, take profit is at 95.16, and stop loss is at 94.58.
The material has been provided by InstaForex Company - www.instaforex.com
