The USDX is already doing a pullback below the resistance level at 98.01. The instrument received the US NFP with a low bearish momentum, which is a part of the current corrective move in the overall trend. Also, we could expect a lower continuation towards the support level of 96.60 in the short term. The MACD indicator is still in negative territory.
Today, the USDX consolidated below the 200 SMA on the H1 chart. There is a strong possibility that it can reach the support zone around 97.30 in the very short term. By the way, we stay with the bullish idea for the long term, as the USDX is dealing with the supply zone offered by that moving average at the intraday charts.
Daily chart's resistance levels: 98.01 / 99.12
Dailychart's support levels: 96.60 / 95.19
H1 chart's resistance levels: 97.50 / 97.70
H1 chart's support levels: 97.30 / 97.08
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 97.50, take profit is at 97.70, and stop loss is at 97.30.
The material has been provided by InstaForex Company - www.instaforex.com
