The instrument is still inside the valid bullish pattern formation on the daily chart because the USDX is above the support level of 99.19 and it is trying to reach the next resistance at the level of 100.49. A breakout of that zone will unleash the bullish momentum and the USDX will reach the resistance level of 101.60 in the near term.
On the H1 chart the USDX is making a rebound at the support level of 99.13 and probably the instrument will test the resistance level of 100.01 again. As we expected, that zone will produce some pullbacks in the USDX because the bullish trend is currently reaching extreme zones and the instrument will start making more deep corrective moves eventually.
Daily chart's resistance levels: 100.49 / 101.60
Dailychart's support levels: 99.19 / 98.01
H1 chart's resistance levels: 100.01 / 100.88
H1 chart's support levels: 99.13 / 97.93
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 100.01, take profit is at 100.88, and stop loss is at 99.13.
The material has been provided by InstaForex Company - www.instaforex.com
