The bearish path continues to take the control at the current trend of the USDX and we can see it is testing the support level of 96.60. This could be a good opportunity to enter the market with buy trades, but the USDX could extend the falls to the support zone of 95.53 in the near term. Anyway, the 200 SMA on the daily chart is still bullish.
On the H1 chart, the USDX is still doing bearish moves below the 200 SMA and also, there are already bearish patterns in place. If the USDX successfully breaks the support level of 96.63, the instrument could reach the downside at the level of 96.24. However, short trades in an intraday view should be placed with cautioun, as the overall trend is still bullish.
Daily chart's resistance levels: 98.01 / 99.19
Dailychart's support levels: 96.60 / 95.53
H1 chart's resistance levels: 97.19 / 97.93
H1 chart's support levels: 96.63 / 96.24
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 97.19, take profit is at 97.93, and stop loss is at 96.46.
The material has been provided by InstaForex Company - www.instaforex.com
