The USDX is recovering from losses and looking to reach the resistance zone of 96.30 on the daily chart because the index is still strong and the structure is calling for more upside moves. As we noted in the recent articles, the correction move could have been finished on the USDX and that is why we want to look for bullish trades.
On the H1 chart, the USDX is still trading below the 200 SMA but it is approaching that zone as the index is getting supported by the level of 96.34 in the short term. We could expect testing of that moving average very soon because the bullish bias is still alive and the USDX could be reaching new short-term highs.
Daily chart's resistance levels: 96.30 / 97.29
Dailychart's support levels: 95.00 / 93.95
H1 chart's resistance levels: 95.87 / 96.23
H1 chart's support levels: 95.34 / 94.70
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 95.34, take profit is at 94.70, and stop loss is at 95.99.
The material has been provided by InstaForex Company - www.instaforex.com