The USDX keeps falling below the resistance level of 96.57 in the daily chart, because that zone is a very strong supply zone. Currently, we can see bulls' reaction after testing of the support level of 95.74. However, a breakout above the resistance level of 96.57 will open the doors to the level of 97.57 in the mid term.
On the H1 chart, the short-term picture is clearly bearish, because the USDX is trading below the 200 SMA and also it's looking for an opportunity to break the support level of 95.89 in order to test the zone around 95.64. At this stage, we are still expecting a breakout of the level at 96.13, in order to achieve the next high around 96.38. The MACD indicator remains at positive territory.
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 seen at 96.13, take profit is at 96.38 and stop loss is at 95.87.
The material has been provided by InstaForex Company - www.instaforex.com