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Daily analysis of USDX for October 04, 2016

USDX has been doing rebounds above the 200 SMA. It's looking for a clear direction on a short-term basis, as the index is facing the resistance zone of 95.79. A breakout higher should expose the 96.27 price level, which should strengthen the bullish bias. However, if USDX manages to pull back below the 95.00 zone, then it can reach the 94.50 level.

USDXH1.png

H1 chart's resistance levels: 95.79 / 96.27

H1 chart's support levels: 95.49 / 95.01

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 95.79, take profit is at 96.27 and stop loss is at 95.31.

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