The USDX is currently dealing with strong resistance placed around the level of 96.57 and we can expect a rally towards the next high of 97.57, but the index seems to get enough bearish momentun in order to make pullbacks in coming days. However, we should recommend to be caution when trading on both sides, at this stage.
In the H1 chart, the USDX did a pullback towards the price zone of 97.10. Now, it's looking to test the support level of 96.38 again after performing a rebound above the 200 SMA. We should be aware of the current intraday bearish structure as the USDX could aim to test the moving average mentioned above again.
Daily chart's resistance levels: 97.57 / 98.29
Daily chart's support levels: 96.57 / 95.74
H1 chart's resistance levels: 96.72 / 96.86
H1 chart's support levels: 96.38 / 95.20
Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the US Dollar Index breaks with a bullish candlestick; the resistance level is at 96.72, take profit is at 96.86, and stop loss is at 96.56.
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