The bearish path is still dominating the current outlook on the daily chart of USDX, where we're watching a lower trading towards the support level of 94.59, which could be broken in next few days in order to test the 200 SMA. That moving average could provide "provisional" dynamic support because the index is oversold in the lower time frames.
On H1 chart, USDX is forming a lower low pattern above the support zone of 94.80, which is trying to block the bearish force. However, 200 SMA is bearish and it could mean the index will perform lower moves. So the index is looking to reach new lows as the bearish momentum remains alive. MACD indicator is on the negative territory.
Daily chart's resistance levels: 95.50 / 96.57
Daily chart's support levels: 94.59 / 93.71
H1 chart's resistance levels: 95.25 / 95.46
H1 chart's support levels: 94.80 / 94.39
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 94.80, take profit is at 94.39, and stop loss is at 95.21.
The material has been provided by InstaForex Company - www.instaforex.com