The daily chart is still calling for upside moves towards the resistance zone of 100.51. Currently, the USDX is trying to finish a bullish pattern formation, which is looking for a rally until the resistance mentioned above. For now, we recommend to follow the bullish bias, which is very strong, because the corrective moves are weak at the time.
During the Tuesday session, the USDX found dynamic support at 200 SMA and now it's trying to consolidate above the support level of 99.14. We're still with the bullish idea until the resistance level of 99.55. Also, a bullish pattern is currently forming on the H1 chart and we should be cautious when adding short trades.
Daily chart's resistance levels: 100.51 / 101.95
Dailychart's support levels: 99.12 / 97.83
H1 chart's resistance levels: 99.55 / 100.12
H1 chart's support levels: 99.14 / 98.83
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 99.55, take profit is at 100.12, and stop loss is at 98.97.
The material has been provided by InstaForex Company - www.instaforex.com
