As we said in our recent article, the USDX is probably doing corrective moves in favor of the overall bullish bias and that's the way the market is currently playing. The daily chart is still showing a strong support located around the 94.66 level. The USDX is trying to break the resistance level at 95.74 in order to reach the zone around 96.97.
The USDX is forming a bearish short-term structure in the H1 chart. The Index hit some weekly lows during yesterday session, but now it's trying to recover until the 200 SMA. If USDX does a breakout at the resistance level of 96.16, it's expected to test the level of 96.77.
Daily chart's resistance levels: 96.97 / 98.08
Daily chart's support levels: 95.74 / 94.66
H1 chart's resistance levels: 96.16 / 96.77
H1 chart's support levels: 95.71 / 95.26
Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the US Dollar Index breaks with a bullish candlestick; the resistance level is at 96.16, take profit is at 96.77, and stop loss is at 95.57.
The material has been provided by InstaForex Company - www.instaforex.com