The index managed to do a retracement last Friday in the wake of the Thanksgiving Day in the United States. We're still waiting for confirmation that a deeper correction already started in order to erase the overbought conditions that USDX has been showing for several weeks in a row. The next key support lies at the 200 SMA (H1 chart). If it is broken to the downside, we can expect further weakness towards the 100.53 level, while strong resistance is still placed at the 101.74 level.
H1 chart's resistance levels: 101.74 / 102.61
H1 chart's support levels: 100.53 / 99.39
Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USD Index breaks with a bullish candlestick; the resistance level is at 101.74, take profit is at 102.61 and stop loss is at 100.87.
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