Daily chart: The USDX hit resistance at the 82.51 level but did not break it. However, the USDX may form a lower high pattern, and thus it will be harder to break this resistance, which is very strong. If the USDX makes a bearish rebound at the current levels, it will be expected to drop to the 200-day moving average. However, the bullish trend is very strong in the USDX. The MACD indicator remains in positive territory and the USDX remains above the 200-day moving average, which strengthens our bullish outlook for the USDX.
H4 chart: The USDX is able to consolidate above the support level of 81.94. Now, the USDX is trying to break the resistance at the 82.49 level and if it succeeds, it will be expected to rise to the level of 83.19. It waits for the USDX to remain bullish for a few days because of this strong consolidation above the 200-day moving average, but we should be very aware, because the MACD indicator is extremely overbought and entering negative territory, which can mean that the USDX executed corrective movements.
H1 chart: The USDX broke the resistance level at 82.32 and quickly the resistance went to the level of 82.50. If the USDX manages to break that level, it is expected to rise to the level of 82.67. Furthermore, if the USDX achieves in breaking the support level of 82.32, it is expected to drop to the level of 82.02. Keep in mind that at the current levels, it is forming a Point of Control (POC), which could act as strong resistance for the USDX. The MACD indicator remains in negative territory.
Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USDX Index breaks a bullish candlestick; the resistance level is at 82.50, take profit is at 82.67, and stop loss is at 82.34.
