The USDX is still forming a higher high pattern on the daily chart, which is looking for an opportunity to trade higher. The resistance level of 96.38 is still strong, and as long as the index continues to move below that zone, we should expect some pullbacks towards the support zone of 95.83.
On the H1 chart, the index did a breakout above the level of 96.15, and now its performing bullish consolidation to breakout the resistance zone of 96.30, towards the next area around the level of 96.46. The 200 SMA is still pointing to the upside and the MACD indicator looks overbought in this time frame.
Daily chart's resistance levels: 96.38 / 96.91
Daily chart's support levels: 95.81 / 95.26
H1 chart's resistance levels: 96.30 / 96.46
H1 chart's support levels: 96.15 / 95.94
Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the US dollar index breaks out with a bullish candlestick; the resistance level is seen at 96.30, take profit is at 96.46, and stop loss is at 96.15
The material has been provided by InstaForex Company - www.instaforex.com