The daily chart continues to show us a corrective phase of the USDX, as the index continues to move in favor of the bearish side but a corrective one as we mentioned above. The next floor or support zone is located at the level of 96.60, where we could expect a rebound to the resistance zone around 98.01. By the way, the bullish outlook is still alive.
The USDX started this week with a deep bearish gap, which is now looking for support at the level of 96.54, more than 100 pips of empty zone. Now, the nearest resistance level is located around 97.08, where the USDX could begin to form a bullish pattern in order to reach the 200 SMA on the H1 chart. But the Index is still with the downside risk in the short term.
Daily chart's resistance levels: 98.01 / 99.12
Dailychart's support levels: 96.60 / 95.19
H1 chart's resistance levels: 97.08 / 97.30
H1 chart's support levels: 96.54 / 96.25
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 97.08, take profit is at 97.30, and stop loss is at 96.85.
The material has been provided by InstaForex Company - www.instaforex.com
