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Daily analysis of USDX for October 31, 2016

The index had a huge decline at the end of Friday, as the FBI's investigation into new Clinton emails helped to that move. Currently, USDX is consolidating below the 200 SMA and it can test the support level of 98.01. If it manages to break that bottom, then we can expect a decline towards the 97.62 level. MACD indicator is in negative territory, supporting that scenario.

USDXH1.png

H1 chart's resistance levels: 98.53 / 99.19

H1 chart's support levels: 98.01 / 97.62

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 98.53, take profit is at 99.19 and stop loss is at 98.68.

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