On the daily chart, the USDX had bullish momentum during yesterday and now it's trying to consolidate above the resistance level of 96.57. A successful move above that zone would open the doors to test the next high at 97.57 where strong resistance is located. For now, we should be cautious when trading in the upside.
The USDX has been trading above the 200 SMA and now it's looking for an opportunuty to break the resistance level at 96.38 in order to reach the next target at 96.65. a deeper pullback could take place at the current levels before any rally, but we still want to see more upside moves as the current momentum is strong enough.
Daily chart's resistance levels: 96.57 / 97.57
Daily chart's support levels: 95.74 / 94.66
H1 chart's resistance levels: 96.38 / 96.65
H1 chart's support levels: 96.13 / 95.89
Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the US Dollar Index breaks with a bullish candlestick; the resistance level is at 96.38, take profit is at 96.65, and stop loss is at 96.13.
The material has been provided by InstaForex Company - www.instaforex.com