Daily chart: The USDX opened this week with a deep bearish gap due to the announcement that former Secretary of the U.S. Treasury Lawrence Summers, told President Barack Obama that he was resigning to be the candidate to succeed Ben Bernanke as a chairman of the Federal Reserve. The USDX fell to the bullish trendline near the 81.05 level, where strong support is placed. It is very likely that the USDX will try to climb to the resistance at 81.50, close to the 200-day moving average. The MACD indicator is entering negative territory.
H4 chart: As in the daily chart, the USDX found support near the 81.14 level, where there is a bullish trendline. USDX is likely to rise to the level of resistance at 81.33 and if it breaks, it is expected to rise to the level of 81.72. On the other hand, if the USDX achieves in break this bullish trendline, it is expected to drop to the level of 80.94. The MACD indicator is in neutral territory, so we should be cautious.
H1 chart: The USDX is forming a higher low pattern, above the support at the 81.09 level. Because USDX left a gap near the level of 81.50, it is likely that the USDX rises to the resistance level of 81.40 and if it breaks it, it will be expected to rise to the level of 81.58. Furthermore, if the USDX achieves in breaking the support level at 81.09, it is expected to drop to the level of 80.93. The MACD indicator remains in negative territory and is entering extreme oversold zone.
Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USDX Index breaks a bearish candlestick; the support level is at 81.09, take profit is at 80.93, and stop loss is at 81.25.
