On the daily chart, the USDX is still finding support around 94.66, but in lower time frames, the bearish bias remains alive and we could expect a breakout in that zone in order to reach the support level of 93.75 in coming days. Anyway, a rebound at current levels, will unleash a strong bullish reaction above the resistance level at 95.74.
The USDX continues to deal with the dynamic resistance offered by the 200 SMA on the H1 chart and now, the Index will test the support level of 94.63 again in order to do a possible lower continuation towards 94.33. Currently, the bias is bearish and long trades are risky. So, we should wait for bearish pattern formation in order to ride the intraday trend.
Daily chart's resistance levels: 95.74 / 96.97
Daily chart's support levels: 94.66 / 93.75
H1 chart's resistance levels: 95.15 / 95.71
H1 chart's support levels: 94.63 / 94.33
Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the US Dollar Index breaks with a bearish candlestick; the support level is at 94.63, take profit is at 94.33, and stop loss is at 94.93.
The material has been provided by InstaForex Company - www.instaforex.com