The index gained bullish momentum at the end of yesterday's session amid a weakness which is still seen in the US dollar since the start of the week. USDX is now trying to rebound above 100.14, where it has formed a double bottom pattern across the board. Now the index is going to test the resistance zone of 100.54 in order to reach the 100.97 level. However, if the 100.14 level gives up, we might expect further declines toward 99.79.
H1 chart's resistance levels: 100.54 / 100.97
H1 chart's support levels: 100.14 / 99.79
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 100.14, take profit is at 99.79 and stop loss is at 100.47.
The material has been provided by InstaForex Company - www.instaforex.com