The USDX is still falling in the daily time frame and we expect to see a breakout of the support zone of 96.30. The current fractal structure is likely to point to the downwards (and it seems to do it), as the Index has been forming a successful lower low pattern over the recent days. Anyway, we cannot discard the idea of a rebound at the current levels.
The resistance level at 96.83 still offers a strong barrier in the intraday charts. Now, the USDX is going to test the support at 96.34. If the USDX does a breakout in that zone, it will to fall to the level of 95.87, which is seen to be a new important monthly low. The MACD is also entering into a negative territory.
Daily chart's resistance levels: 97.83 / 99.94
Dailychart's support levels: 96.30 / 95.00
H1 chart's resistance levels: 96.83 / 97.18
H1 chart's support levels: 96.34 / 95.87
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 96.34, take profit is at 95.87, and stop loss is at 96.83.
The material has been provided by InstaForex Company - www.instaforex.com