Daily chart: The USDX had a very bullish session yesterday, making a rebound on the support at the 80.62 level and up to resistance at 81.50, which houses the 200-day moving average. We discussed in the previous articles this rebound but it is still possible that this movement is the continuation of a formation of a higher low pattern. If the USDX manages to break the resistance at 81.50, it would be expected to rise to the level of 82.51. On the other hand, it is possible that the USDX makes a bearish rebound at current levels and then falls to the support level at 80.62. The MACD indicator is extremely oversold, so we could see very slow movements during today's session in the USDX.
H4 chart: The USDX broke the resistance at the 80.94 level and now is trying to break the 81.33 level. If successful, it is expected to rise to the level of 81.72. However, it is also possible that the USDX makes a bearish rebound at current levels and falls back to support at 80.94 level. If the USDX manages to break this support, it is expected to fall to the bearish trend line at the 80.45 level. The MACD indicator is in positive territory.
H1 chart: In this chart, the USDX is heavily consolidated above the 200-day moving average. Near the support in the 80.93 level a Point of Control (POC) was formed, it strengthens the bullish trend much that this pair has in the short term. Now the USDX is forming a lower high pattern below the resistance leve at 81.40. If the USDX manages to break this resistance, it is expected to rise to the level of 81.58. On the other hand, if the USDX breaks the 81.09 level, it would be expected to drop to the level of 80.93. The MACD indicator is in positive territory and is in extreme overbought, so we must be cautious.
Fundamental Outlook: For today's session in the United States at 12:30 GMT Unemployment Claims (Previous: 334K / Forecast: 343K) and at 14:00 GMT the Existing Home Sales (Previous: 4.97M / Forecast: 5.01m) and the Philly Fed Manufacturing Index (Previous: -5.2 / Forecast: -0.6) will be published.
Trading recommendations for today: Based on the H4 chart, place buy (long) orders only if the USDX Index breaks with a bullish candlestick, the resistance level is at 81.33, take profit is at 81.72, and stop loss is at 80.94.
