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Daily analysis of USDX for December 05, 2016

USDX found strong resistance around 101.74 once again and it's headed to test the support zone of 100.53. A range is still playing a key role in current US Dollar's trend development and with that being said, we cannot discard a huge move to take place and the preferred scenario is the bearish one, as corrective moves could start to erase some overbought levels in the index. Next support is located at the 99.39 level.

USDXH1.png

H1 chart's resistance levels: 101.74 / 102.61

H1 chart's support levels: 100.53 / 99.39

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 101.74, take profit is at 102.61 and stop loss is at 100.87.

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