Daily chart: The USDX has made a strong bullish rebound on the support level of 80.11. However, these movements could be the formation of a higher low pattern. Furthermore, the USDX could change its current trend, so we must be pending before any formation of a fractal. If the bullish rebound gets prolonged, one would expect that the USDX rises to the level of 80.62. The MACD indicator is still in negative territory.
H4 chart: The USDX formed a fractal near the 79.95 level and is now consolidating above the support level of 80.15. If the USDX does make a bullish breakout in the trend line near the 80.25 level, it is expected to rise to the resistance level of 80.44. On the other hand, if the USDX makes a bearish rebound at current levels, it would be expected to fall to the level of 80.09. The MACD indicator is in positive territory.
H1 chart: The USDX made a bullish rebound above the 79.95 level and now the USDX is consolidating above the 80.15 level. It is very likely that the USDX try to climb up to the resistance level of 80.35, where the 200-day moving average is located. Furthermore, if the USDX gets consolidated below the 80.15 level, it's expected to fall to the level of 79.88. The MACD indicator is in the overbought zone.
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 80.15, take profit is at 79.88, and stop loss is at 80.42.
The material has been provided by InstaForex Company - www.instaforex.com
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