On the daily chart, bears are pushing the index lower until the support level of 95.50, which is a zone that can be tested in the coming hours at least. That's why we should expect a rebound over there, where a correction should happen before any further lower continuation. MACD indicator remains on the negative territory.
The short-term outlook is very bearish, as the USDX continues to break supports on the downside road. Now it's testing the support level of 95.74. A breakout there will open the doors to fall until the 95.46 level at least. However, bear in mind the current bias is indicating oversold conditions in the short term.
Daily chart's resistance levels: 96.57 / 97.57
Daily chart's support levels: 95.50 / 94.59
H1 chart's resistance levels: 96.04 / 96.37
H1 chart's support levels: 95.74 / 95.46
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 95.74, take profit is at 95.46, and stop loss is at 96.04.
The material has been provided by InstaForex Company - www.instaforex.com