The USDX is still finding support at the level of 94.18 and the bullish momentum in a general term is still alive on this instrument on the daily chart. Indeed, as we noted in past articles, the 200 SMA is still bullish and the USDX is currently inside a bullish pattern formation. From the technical view, we're still looking for upside targets at the 95.45 and 96.78 levels.
During the session om Tuesday, the USDX traded sideways between the range of the 94.38 and 94.02 levels. Currently, we recommend following the bearish bias, because the instrument is below the 200 SMA, which is also bearish. The support level of 94.02 needs to be broken in order that the USDX could reach 93.62 in a very short term.
Daily chart's resistance levels: 95.45 / 96.78
Dailychart's support levels: 94.18 / 93.02
H1 chart's resistance levels: 95.16 / 95.57
H1 chart's support levels: 94.87 / 94.38
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 94.02, take profit is at 93.62, and stop loss is at 94.42.
The material has been provided by InstaForex Company - www.instaforex.com
