The daily chart is showing that currently the US dollar index is on the bear market. The index is looking to test the next support around the 95.50 level. However, a rebound should be expected when the index manages to reach that zone. However, the index could move with a downward bias too, if USDX makes a breakout of the 95.50 level.
USDX has recovered from losses incurred this week, but the intraday bias is still bearish as the 200 SMA on H1 chart is pointing downwards. Next target on this road is the support level of 95.94, where we expect a breakout in order to fall until the 95.60 zone. MACD indicator is entering the negative territory.
Daily chart's resistance levels: 96.57 / 97.57
Daily chart's support levels: 95.50 / 94.70
H1 chart's resistance levels: 96.37 / 96.88
H1 chart's support levels: 95.94 / 95.60
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 95.94, take profit is at 95.60, and stop loss is at 96.28.
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