The bears are trying to make the USDX to test the support level at 96.30 in the short and medium terms. For now, it's not advisable to add long positions at this stage because the Index remains very strong in the current corrective move. Also, we could expect a rebound when that support zone is reached, but we want to remain bearish until the prise tests that level.
The USDX is in a decisive cycle because the USDX could find a strong floor at the support level of 96.67performong a breakout at the support zone around 96.99. Now, we remain bearish until that level, but in the medium and long terms, we don't recommend following a strong “bearish bias", as the most overall trend is still bullish.
Daily chart's resistance levels: 97.83 / 99.12
Dailychart's support levels: 96.30 / 94.87
H1 chart's resistance levels: 97.32 / 97.70
H1 chart's support levels: 96.99 / 96.67
Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USD Index breaks with a bearish candlestick; the support level is at 97.70, take profit is at 97.32, and stop loss is at 98.06.
The material has been provided by InstaForex Company - www.instaforex.com
