The index found dynamic resistance at 200 SMA (H1 chart) and that helped to block the bulls' advance across the board during Monday's session. The support zone of 101.96 is being challenged and a consolidation below that area should expose the next key support around 101.39, which should help to strengthen the bears in the short-term. To the upside, the next resistance lies at the 102.30 level.
H1 chart's resistance levels: 102.29 / 102.81
H1 chart's support levels: 101.96 / 101.39
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 101.96, take profit is at 101.39 and stop loss is at 102.54.
The material has been provided by InstaForex Company - www.instaforex.com