The USDX performed a rebound from the support level of 94.18 on daily chart, because the instrument is looking to do a rally towards the resistance level of 95.45, where a breakout should happen, because the USDX is still very bullish in the medium and long term. By the way, we should remain cautious, as the USDX could retrace to the support level of 93.02.
On the H1 chart, the USDX found strong support at the level of 94.02, which is also below the 200 SMA. Currently, this instrument is forming a higher high pattern, looking for a rally until the resistance level of 94.87. We should be cautious when placing buy orders at current levels, because, eventually, the USDX could do a pullback to the support level of 94.02 to resume the bearish bias.
Daily chart's resistance levels: 95.45 / 96.78
Dailychart's support levels: 94.18 / 93.02
H1 chart's resistance levels: 95.16 / 95.57
H1 chart's support levels: 94.87 / 94.38
Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USD Index breaks with a bearish candlestick; the support level is at 94.02, take profit is at 93.62, and stop loss is at 94.42.
The material has been provided by InstaForex Company - www.instaforex.com
