Daily chart: Since two sessions, the USDX has been perfoming very bearish movements and is now trying to make one real breakout in the 83.22 support level. If the USDX breaks this support, it is very possible that the USDX falls to the level at 81.74, in the medium term. For now, I do not recommend doing swing trading, except if the USDX begins to form a higher low pattern below support at the 83.22 level, because there is the possibility that the USDX makes a bullish rebound and go back up to the resistance in the 83.74 level. The MACD indicator is in negative territory and still showing strength in the bearish trend of the moment, so it could support a bearish outlook in the long term for this market.
H4 Chart: The USDX is finding strong support for the bullish trend line near the level at 83.05 and the 200-day moving average. If the USDX manages to break this trend line, it is expected to fall to 82.60 level in the medium term. Furthermore, there is the possibility that the rebound USDX makes a bullish trend line of this and can back up to the level of resistance in 83.49. Now, the USDX is forming a higher low pattern, so it would be possible to see declines in this market, in the next few hours or the next week. The MACD indicator is in negative territory but is approaching extreme oversold levels.
H1 chart: The USDX is forming a higher low pattern over the support at the level of 82.97. If the USDX breaks that support, it is expected to fall to the level of 82.66. On the other hand, we note that near the 200-day moving average, a strong Point of Control (POC) is formed and the POC is doing this market strength. If the USDX breaks the resistance at 83.27 level, would be expected to rise to the level of 83.52. We must be careful with this market for intraday trading, because the MACD indicator is in positive territory.
Fundamental Outlook: For today's session, economic data releases are not expected to have high impact in the United Kingdom and the United States, so this session could be very slow in the market.
Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USDX market breaks with a bearish candlestick, the support level is at 82.97, take profit is at 82.66, and stop loss is at 83.26.
