The USD index took a dive during the Wednesday session and now is finding strong support on the daily chart at the level of 98.01. This is a part of a correction move in favor of the overall bullish bias. For now, we cannot discard more bullish moves in the medium and long term, but in the near term, there could be more corrective moves.
On the H1 chart, the USDX is dealing with the resistance level of 99.13 after a fall until the support zone of 97.19 which is below the 200 SMA. A breakout of that resistance will give more bullish momentum to this instrument to reach the next resistance at the psycological zone of 100.00 in the short term.
Daily chart's resistance levels: 99.19 / 100.49
Dailychart's support levels: 98.01 / 96.60
H1 chart's resistance levels: 99.13 / 100.01
H1 chart's support levels: 97.93 / 97.19
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 99.19, take profit is at 100.49, and stop loss is at 98.27.
The material has been provided by InstaForex Company - www.instaforex.com
