In the recent days, the USDX was trying to consolidate above the support level at 99.12 after being rejected at 96.00. Now, the index is looking to reach the resistance level of 100.51 that is seen to be a key zone. Anyway, the USDX will start to form a higher high pattern on the daily chart in the coming days.
The sideway moves continue on the H1 chart, as the USDX is trying to hold above the resistance level at 99.55 again in order to rally towards the resistance level at 100.12, which is an important high. The 200 SMA still favors bulls in this time frame and we don't like the idea to look for counter-trend trades.
Daily chart's resistance levels: 100.51 / 101.95
Dailychart's support levels: 99.12 / 97.83
H1 chart's resistance levels: 99.55 / 100.12
H1 chart's support levels: 99.14 / 98.83
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 99.55, take profit is at 100.12, and stop loss is at 98.97.
The material has been provided by InstaForex Company - www.instaforex.com
