The USDX remains bullish at the daily chart and we can see a rebound in progress on the support level of 96.60. In the upside, the next target is the resistance zone of 98.01. If the instrument breaks that zone, it would be expected to rise until the level of 99.12, as the overall bullish trend stays alive. Be cautious with the MACD indicator, that is currently at negative territory.
The USDX is likely to be forming a double top pattern on the H1 chart, above the 200 SMA, because it's dealing with the dynamic resistance offered by that moving average. On the other hand, the USDX could fall until the support level of 97.19, in order to resume the bearish bias towards the support level of 96.63 in the short term.
Daily chart's resistance levels: 98.01 / 99.12
Dailychart's support levels: 96.60 / 95.53
H1 chart's resistance levels: 97.90 / 98.36
H1 chart's support levels: 97.19 / 96.63
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 97.19, take profit is at 96.63, and stop loss is at 97.72.
The material has been provided by InstaForex Company - www.instaforex.com
