Daily chart: Yesterday, the USDX had a very bearish session, where it managed to finally break the support at the 83.22 level. Now, the USDX is trying to break the support at the 82.51 level, but to achieve this it has to form a bearish pattern, as the higher low pattern. It is possible that this market has begun definitely a bearish trend in the medium term, but keep in mind that the USDX is still above the 200-day moving average. If the USDX breaks the support at the 82.51 level, it is expected to fall to support at the 81.74 level. On the other hand, if the USDX makes bullish in this support at 82.51, it would be expected to return to the level of resistance in the 83.22. The MACD indicator remains in negative territory, showing no signs of being oversold in the USDX.
H4 chart: The USDX has fallen below the 200-day moving average, falling to find support in the bearish trend line that is near the 82.50 level. Now the USDX is forming a higher low pattern above this trend line break and if achieved, it would be expected to fall to the level of support 82.15. On the other hand, if the USDX manages to find support in this trend line, it would be expected to rise again until the resistance level at 83.17. The MACD indicator is in negative territory, but is approaching oversold levels, so we recommend caution to do trading in this pair for now.
H1 chart: The USDX is forming a higher low pattern over the support at the level of 82.32. Now, the USDX is trying to break the resistance level of 82.66, where a Point of Control (POC) is forming. In this chart, the USDX is below the 200-day moving average, suggesting that the bearish outlook for this market is still alive. If the USDX breaks the support level at 82.32, it would be expected to drop to the level of 82.02. On the other hand, if the USDX breaks the resistance at 82.97 level, it would be expected to rise to the level of 83.27, which houses the SMA 200. The MACD indicator is in extreme oversold, which could indicate that this market could make consolidation moves during the next few hours.
Fundamental outlook: For today's session in the United States at 12:30 GMT Trade Balance (Previous:-38.8B / Forecast:-41.1B) will be released. If the current reading is higher than the forecast, USDX may perform bullish movements during the time.
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 82.32, take profit is at 82.02, and stop loss is at 82.66.
