On the daily chart, we can still see the progress of a pullback near the resistance level of 96.64. Now, the index is testing the support level of 95.83, where a bearish consolidation will push the USDX lower until the next support around the level of 95.26. The 200 SMA is turning into the neutral territory, and the MACD is still in the positive zone.
The USDX is looking for a way to perform a rebound at 200 SMA zone on the H1 chart. Currently, we still focus on the territoty around the resistance level of 96.09. When a breakout happens there in coming hours, the index will rise to 96.34. However, bear in mind the current strength of support level around the price zone of 95.80.
Daily chart's resistance levels: 96.64 / 97.23
Daily chart's support levels: 95.83 / 95.26
H1 chart's resistance levels: 96.09 / 96.34
H1 chart's support levels: 95.80 / 95.54
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 96.09, take profit is at 96.34, and stop loss is at 95.86.
The material has been provided by InstaForex Company - www.instaforex.com