On the daily chart, the USDX is trading above the 200 SMA but the current pullback is expected to extend its fall towards the support zone of 94.36. Over that zone, a strong rebound could happen, which could deliver bulls back again to dominate the overall trend on this index. The MACD indicator is entering the negative territory.
The USDX is currently doing a consolidation below the resistance zone of 95.03 and we should note that the 200 SMA is still above the current price zone. The support level of 94.61 should be broken in coming hours in order to test the level of 94.15 on a short-term basis. The MACD indicator remains at the positive territory.
Daily chart's resistance levels: 95.26 / 95.83
Daily chart's support levels: 94.36 / 93.16
H1 chart's resistance levels: 95.03 / 95.38
H1 chart's support levels: 94.61 / 94.15
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 94.61, take profit is at 94.15, and stop loss is at 95.08.
The material has been provided by InstaForex Company - www.instaforex.com