The USDX is conducting a deep pullback on the daily, because this instrument is trying to make a breakout at the support level of 85.18. The above scenario could happen in the USDX, because the current bullish trend is strong and there is still plenty of space for this instrument to fall in the medium term. The MACD indicator is entering negative territory.
Dailychart's resistance levels: 86.20 – 87.35
Dailychart's support levels: 85.18 – 84.29
On the H1 chart, the USDX is finally consolidating below the 200 SMA and the resistance level of 85.49. The USDX is forming a lower low pattern to make a breakout at the support level of 8527 and fall to the level of 85.03. This bearish outlook could be supported by the current position of the MACD indicator on this chart.
H1 chart's resistance levels: 85.73– 85.95
H1 chart's support levels: 85.49 – 85.27
Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USD Index breaks with a bullish candlestick; the resistance level is at 85.27, take profit is at 85.03, and stop loss is at 85.49.
The material has been provided by InstaForex Company - www.instaforex.com
