The USDX gained bullish momentum above the support level of 96.57 and now it could be expected to break the level of 97.57, where the key resistance zone is located. If that happens, the Index will rise to the level of 98.29. However, if a pullback happens at the current stage, the USDX will test the support zone of 96.57 again.
It seems there is a higher high pattern formation taking in place above the 200 SMA on the H1 chart. By the way, the USDX is pulling back and looking for an opportunity to test the support level of 97.12 again. If Index does a breakout here, it would be expected to fall until the level of 96.73. Be aware of the currrent bullish intraday bias in this time frame.
Daily chart's resistance levels: 97.57 / 98.29
Daily chart's support levels: 96.57 / 95.63
H1 chart's resistance levels: 97.65 / 98.09
H1 chart's support levels: 97.12 / 96.73
Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the US Dollar Index breaks with a bearish candlestick; the support level is at 97.12, take profit is at 96.73, and stop loss is at 97.50.
The material has been provided by InstaForex Company - www.instaforex.com