The USDX is currently weak and it is looking to find a floor at the support level of 96.30. This could be possible in the next week, as the Index was rejected by the resistance zone at 97.83. But we are still supporting the idea of a rebound if the USDX achieves the support at the level of 96.30 as this zone is very strong on the daily chart.
During the last days, on the H1 chart, the USDX found strong dynamic resistance at 200 SMA. Now it is looking to develop a lower low pattern above the support level of 96.30. If the USDX does a breakout on that floor, it would be expected to fall to the level of 96.34, which is our next downside target in the short term.
Daily chart's resistance levels: 97.83 / 99.94
Dailychart's support levels: 96.30 / 95.00
H1 chart's resistance levels: 97.18 / 97.52
H1 chart's support levels: 96.83 / 96.34
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 96.83, take profit is at 96.34, and stop loss is at 97.32.
The material has been provided by InstaForex Company - www.instaforex.com