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Daily analysis of USDX for January 04, 2017

The index gained bullish momentum following strong US data posted during Tuesday's session and it managed to make a new 14 years high across the board. However, USDX was capped by the 103.81 level, where a pullback took place and sent the index to test the support zone of 103.15. If it does a breakout below that area, then we can expect a decline towards 102.82.

USDXH1.png

H1 chart's resistance levels: 103.53 / 103.81

H1 chart's support levels: 103.15 / 102.82

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 103.53, take profit is at 103.81 and stop loss is at 103.25.

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