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Daily analysis of USDX for February 01, 2016

The US dollar index is forming a higher high pattern below the resistance level of 99.73 after a huge rebound made at lows of January 28 . However, we should note that a strong inflection area is located around that resistance zone because the index was rejected during the session on January 21 as we can see at the H1 chart. The MACD indicator is overbought and we can see a correction towards the level of 99.43.

USDXH1.png

H1 chart's resistance levels: 99.73 / 99.97

H1 chart's support levels: 99.43 / 99.23

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USDX breaks with a bullish candlestick; the resistance level is seen at 99.73, take profit is at 99.97, and stop loss is at 99.49.

The material has been provided by InstaForex Company - www.instaforex.com