On the daily chart, the USD index made a pullback. Now it's testing the support level of 97.57. On the daily chart, we can see the bullish bias could be facing a key zone which will make the USDX retest new lows on a weekly basis because the resistance level of 98.29 remains very strong against the current bullish bias the index is following.
USDX is currently trading above the 200 SMA on H1 chart, but continues to be supported by that moving average, which is also providing this Index with dynamic support. That's why we should expect a rebound at current levels. Eventually, USDX could test again the resistance level of 98.09 on a short-term basis.
Daily chart's resistance levels: 98.29 / 99.16
Daily chart's support levels: 97.57 / 96.57
H1 chart's resistance levels: 98.09 / 98.40
H1 chart's support levels: 97.65 / 97.12
Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USD Index breaks with a bullish candlestick; the resistance level is at 98.09, take profit is at 98.40, and stop loss is at 97.77.
The material has been provided by InstaForex Company - www.instaforex.com