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Daily analysis of USDX for July 18, 2016

USDX is looking to trade higher during this week, as it's attempting to break last week's lows, and the next focus could be on the 97.74 level in a short-term view. If the Index manages to do a pullback at the current stage, then it can decline to the 95.89 level, where a breakout should open the doors to test the 95.20 level. The MACD indicator is reaching overbought conditions and favouring that scenario.

USDXH1.png

H1 chart's resistance levels: 96.60 / 97.74

H1 chart's support levels: 95.89 / 95.20

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 96.60, take profit is at 97.74 and stop loss is at 95.47.

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