The index continues to develop a corrective structure on the daily chart, as price action is currently showing us a consolidation above the key level of 96.60. It's expected to rise to the resistance level of 98.01, where the USDX could try another breakout in order to follow the bullish bias. Be cautious, as the index could do a pullback on the way.
During the yesterday session, the USDX had a strong bullish momentum until the resistance zone of 98.00, but the index faced a strong selling pressure there and did a pullback. For now, it's trading below the 200 SMAagain. This could be an indication of a bearish consolidation in the short term, as the USDX is likely to find dynamic resistance on that moving average.
Daily chart's resistance levels: 98.01 / 99.12
Dailychart's support levels: 96.60 / 95.19
H1 chart's resistance levels: 97.75 / 98.00
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 97.75, take profit is at 98.00, and stop loss is at 97.50.
The material has been provided by InstaForex Company - www.instaforex.com
