On the daily chart we can see a huge bullish consolidation in progress, as the USDX is trying to perform a breakout at the resistance zone of 95.45. Bulls will be very strong when the instrument starts to form a higher high pattern above that territory. For now, we could recommend to wait for that breakout before resuming buy orders on the USDX.
The resistance level of 95.52 on the H1 chart is still solid and the USDX stays alive above the support level of 95.31. This shows us a proof of the current bullish bias's strengthening on the intraday charts. The 200 SMA is bullish and we expect more bullish rallies on this instrument, but first, we would like to see the breakout on that resistance zone.
Daily chart's resistance levels: 95.45 / 96.96
Dailychart's support levels: 94.18 / 93.02
H1 chart's resistance levels: 95.52 / 96.63
H1 chart's support levels: 94.02 / 93.87
Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USD index breaks through with a bullish candlestick; the resistance level is at 94.38, take profit is at 94.87, and stop loss is at 94.41.
The material has been provided by InstaForex Company - www.instaforex.com
