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Daily analysis of USDX for August 18, 2016

Following the FOMC minutes, USDX tested the support zone of 94.65, where a breakout failed and now, the index can perform a rebound towards the resistance level of 95.19. The structure is still pointing to the downside, but the minutes didn't trigger major moves and after that, the USDX retraced back above that support level. Currently, if the index achieves to consolidate below that zone, then it can test the 94.32 level.

USDXH1.png

H1 chart's resistance levels: 95.19 / 95.51

H1 chart's support levels: 94.65 / 94.32

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 94.65, take profit is at 94.32 and stop loss is at 95.00.

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