Bears took the control of the situation with the USDX, which is now trading below the 96.57 barrier zone. It's looking to test the next support located around the 95.50 level in the midterm outlook. We should consider the current moves as corrective in favor of the overall bullish trend, but we need to pay atenttion to the strong resistance formed at the 97.57 level.
The short-term picture on H1 chart is very bearish, because the Index managed to consolidate below the 200 SMA and the resistance zone of 96.37, with a lower low-pattern formation. The next support is located at the 95.94 level. In case a breakout happens over there, the USDX will fall until the 95.60 zone.
Daily chart's resistance levels: 96.57 / 97.57
Daily chart's support levels: 95.50 / 94.70
H1 chart's resistance levels: 96.37 / 96.88
H1 chart's support levels: 95.94 / 95.60
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 95.94, take profit is at 95.60, and stop loss is at 96.28.
The material has been provided by InstaForex Company - www.instaforex.com