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Daily analysis of USDX for October 18, 2016

USDX is looking to consolidate above the 98.00 handle, but it seems that the bearish force is still adding pressure on the index around that area. However, to confirm further advances in the US Dollar Index, one should expect a breakout above the key zone of 98.53 in order to reach the psychological level of 99.00. MACD indicator remains in the negative territory, supporting a possible bearish correction idea.

USDXH1.png

H1 chart's resistance levels: 98.01 / 98.53

H1 chart's support levels: 97.71 / 97.15

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 98.01, take profit is at 98.53 and stop loss is at 97.49.

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