Daily chart: The USDX has made a bearish rebound that could indicate a change in trend, as the USDX could be finding dynamic resistance in the 200 SMA. Now, the USDX is approaching consolidate below the 200 SMA, so it is very likely that the USDX to fall to the support level of 80.62. However, it is also very likely that USDX will make a bullish rebound at current levels and go up to the resistance level of 81.50. The MACD indicator is in positive territory.
H4 chart: The USDX is maintained within the range between 81.29 and 80.99 levels. It is very likely that the USDX find strong support at the level of 80.99, but the USDX could conduct a breakout at that support level, as the MACD indicator is in negative territory, so the strength of the bears could dominate the USDX in the short term. However, the USDX remains in positive territory, so our bullish outlook remains alive.
H1 chart: The USDX found resistance near the level of 81.40, where it formed a fractal. Now, the USDX is forming a higher low pattern near the support level of 81.09. If the USDX makes a breakout at that level, would be expected to fall to the level of 80.93, where the 200-day moving average is located. Furthermore, the USDX could perform a bullish rebound at current levels and up to the resistance level of 81.40, which is the closest point of control. The MACD indicator is in negative territory.
Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USDX Index breaks with a bearish candlestick; the support level is at 81.09, take profit is at 80.93, and stop loss is at 81.25.
The material has been provided by InstaForex Company - www.instaforex.com
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