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Daily analysis of USDX for July 27, 2016

The index is still looking to find a catalyst that allows a rebound to resume the overall bullish bias, as the 200 SMA on the H1 chart is still offering dynamic support. That's why we would like to see the US Dollar bullish as long as it makes a breakout above the 97.27 level, with a near-term target around the 97.74 level. The MACD indicator is supporting that idea as it's in positive territory.

USDXH1.png

H1 chart's resistance levels: 97.27 / 97.74

H1 chart's support levels: 96.92 / 96.60

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 97.27, take profit is at 97.74 and stop loss is at 97.24.

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