As of writing, the dollar index (CFD #USDX) is trading near the 113.25 mark, maintaining the potential for further growth. Today, the dollar's upward trend continues, pushing the DXY toward more than 20-year highs around 120.00, 121.00.
The very first signal for the resumption of purchases will be a breakdown of the 113.56 local resistance level, and a breakdown of the resistance levels 114.00, 114.74 will be the confirmation.
In an alternative scenario, the signal for sales will be on a breakdown of the local support level at 113.00 and the support level at 112.57 (200 EMA on the 1-hour CFD #USDX chart). The target is an important support level at 110.20 (50 EMA on the daily chart). Its breakdown, in turn, may provoke a deeper correction to the support levels of 106.10 (144 EMA on the daily chart), 104.35 (200 EMA on the daily chart).
Support levels: 113.00, 112.57, 111.00, 110.20, 106.10, 104.35
Resistance levels: 113.56, 114.00, 114.74, 115.00
Trading Tips
Sell Stop 109.90. Stop Loss 111.10. Take Profit 109.40, 105.55, 103.80
Buy Stop 111.10. Stop-Loss 109.90. Take-Profit 111.75, 112.50, 114.00, 114.74, 115.00
