On the daily chart, USDX has been looking to extend losses until the support level of 95.50. However, the overall trend is still bullish and current price action is calling to the upper side, so we should see a test of the zone around the 97.57 level in coming days. 200 SMA is turning neutral and MACD remains on the negative territory.
USDX found strong support around the 96.37 level and it could test the resistance zone of 96.88, where the 200 SMA is currently located on H1 chart. We could expect a pullback to happen at this level that gives a bearish momentum to the Index. However, a breakout over there will push the USDX until the 97.37 level. MACD indicator is entering the overbought 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.
The material has been provided by InstaForex Company - www.instaforex.com