The index is starting to correct the bullish bias held from December 15th session and it's now being supported by the 200 SMA at H1 chart. However, the risk to the downside remains high and we're expecting a leg lower to test the support zone of 93.30. If USDX does a breakout below that area, the next target should be the 92.83 level.
H1 chart's resistance levels: 94.09 / 94.85
H1 chart's support levels: 93.30 / 92.83
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 93.30, take profit is at 92.83 and stop loss is at 93.76.
