Currently, we can see a bearish move dominating in the short cycle on the USDX daily chart because the index is trying to break the support level of 97.83. Now, given that option, we could expect another lower move to the support zone of 96.30. On the other hand, a rebound at the current levels will make the USDX test the resistance level of 100.51.
According to the intraday outlook, the USDX is trying to fall to the support level of 97.70. We could expect a breakout of that zone if the index forms a lower low pattern. The bearish bias is still alive in the intraday view, but the USDX could consolidate again above the 200 SMA on the H1 chart eventually. The MACD indicator is on the negative territory.
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 sell (short) orders only if the USD Index breaks with a bearish candlestick; the support level is at 97.70, take profit is at 97.32, and stop loss is at 98.06.
The material has been provided by InstaForex Company - www.instaforex.com
