The USDX is currently doing downward movements within a corrective phase, which seems to be very extended on the daily chart, because the index could retrace to the 200 SMA again. When the USDX tests that area, it could perform a rebound to ride the overall bullish trend.
On the H1 chart, The USDX is moving below the resistance level of 95.20 with a lower low pattern formation, because it's looking for new monthly lows. The 200 SMA is also pointing to the downside, with near-term targets at the level of 94.77. The MACD indicator is still moving inside the negative territory and that is why bears are still an option here.
Daily chart's resistance levels: 96.64 / 97.23
Daily chart's support levels: 95.83 / 95.26
H1 chart's resistance levels: 95.20 / 95.41
H1 chart's support levels: 94.99 / 94.77
Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the US Dollar Index breaks with a bearish candlestick; the support level is seen at 94.99, take profit is at 94.77, and stop loss is at 95.21.
The material has been provided by InstaForex Company - www.instaforex.com