The index managed to consolidate gains above 102.56 during last Friday and it can be a sign that a profit-taking action before New Year Eve is coming. However, to confirm such scenario, we should expect a break below the support level of 101.40, where it coincides with the 200 SMA on the H1 chart. MACD indicator is favoring that scenario. To the upside, we can find a resistance at the 103.98 level.
H1 chart's resistance levels: 103.98 / 104.69
H1 chart's support levels: 102.56 / 101.40
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 103.98, take profit is at 104.69 and stop loss is at 103.26.
The material has been provided by InstaForex Company - www.instaforex.com