The USDX is currently having a bullish momentum above the support level at 97.83, heading towards the resistance zone of 99.12 in the medium term. This move was expected to take place, as the index formed an important downside fractal within the previous week.
Now, we should remain cautious as the USDX could start to form a bullish pattern in shorter time frames.
We could see a solid bullish structure in the H1 chart. The USDX is consolidating above the 200 SMA on this time frame. Also, it's forming a higher high pattern and is likely to try a breakout at the resistance level of 98.45, in order to reach the 98.69 level. By the way, our bearish outlook remains alive in the short term as long as the USDX stays very close to the 200 SMA.
Daily chart's resistance levels: 99.12 / 99.94
Dailychart's support levels: 97.83 / 96.30
H1 chart's resistance levels: 98.45 / 98.69
H1 chart's support levels: 98.24 / 97.98
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 98.24, take profit is at 97.98, and stop loss is at 98.50.
The material has been provided by InstaForex Company - www.instaforex.com