Daily chart: The USDX continues to form a higher low pattern in this chart, after the USDX has made a bearish rebound from the resistance at the level of 80.62. Now, the USDX is trying hard to break the support at the 80.11 level and if it succeeds, it will be expected to fall to the level of 79.19. On the other hand, if the USDX makes a bullish rebound at current levels, it will be expected to rise again to the resistance at the 80.62 level. The MACD indicator is entering neutral territory and in extreme oversold zone.
H4 chart: The USDX fell again to the support at the 80.09 level, where a higher low pattern is forming. If the USDX manages to break that level, it is expected to fall to support at the 79.50 level. Moreover, it is likely that the USDX will rise again to the resistance level at 80.50. However, we should be pending before any formation of a bearish pattern, because the USDX still remains below the 200-day moving average. The MACD indicator is in extreme overbought zone and entering negative territory, which would strengthen our bearish outlook in the USDX.
H1 chart: The USDX broke the support at the 80.35 level, which quickly fell to the level of 80.15 and the pair made a bullish rebound. Now, the USDX is forming a higher low pattern, and if the USDX manages to break this support level, it will be expected to fall to the level of 79.88. On the other hand, if the USDX breaks the resistance level at 80.35, it will be expected to rise to the level of 80.59, where the SMA 200 is placed. The MACD indicator is in extreme oversold zone and entering neutral territory.
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 80.15, take profit is at 79.88, and stop loss is at 80.42.
