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Daily analysis of USDX for May 12, 2016

On the H1 chart, the USDX found dynamic support at the 93.80 level, where we could expect a rebound towards the 94.06 level, if the 200 SMA holds in coming days. However, the overall bullish bias is still solid and maybe the coming corrections could be catalysts for further bullish strength. The MACD indicator is showing a market oversold, so the Index may perform a larger rebound.

USDXH1.png

H1 chart's resistance levels: 94.06 / 94.35

H1 chart's support levels: 93.80 / 93.57

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USD Index breaks with a bullish candlestick; the resistance level is at 94.06, take profit is at 94.35, and stop loss is at 93.78.

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