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Daily analysis of USDX for May 06, 2016

On the H1 chart, USDX continues to recover above the 200 SMA, and it could pull back from the resistance zone of 93.80 in order to resume the overall bearish bias. However, that scenario could change when a breakout happens above the 94.06 level in order to extend the rally towards the highs from the April 27th session.

USDXH1.png

H1 chart's resistance levels: 93.80 / 94.06

H1 chart's support levels: 93.52 / 93.26

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 93.52, take profit is at 93.26, and stop loss is at 93.79.

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