Daily chart: The USDX continues extending its drop below the resistance at 80.11, and now the chances that the USDX will fall to support at the 79.19 level very soon are increased. However, it is possible that the USDX begin forming a bearish pattern, because the fall would not become completely lateralized. On the other hand, if the USDX manages to break the resistance at the 80.11 level, it would be expected to rise to the level of 80.62. The MACD indicator remains in negative territory and entering extremely oversold zone.
H4 chart: The USDX is trying to get out of the range that has formed the bearish trendline near the level of 79.85 and 79.45. USDX is likely to find support at this trendline, but we must be pending before any formation of a bearish pattern, because the USDX remains very bearish in this chart. The MACD indicator remains in negative territory and gradually is entering extreme oversold area, so we must be watchful. The USDX remains below the 200-day moving average.
H1 chart: The USDX managed to break the 79.88 level, and now it is trying to break the support level at 79.64, with the formation of a higher low pattern. If the USDX manages to break this support level, it would be expected to fall to the level of 79.39. On the other hand, if the USDX manages to break the resistance at the 79.88 level, it would be expected to rise to the level of 80.15. The MACD indicator remains in positive territory and the USDX still remains very bearish in this chart, so we recommend only following that trend for now.
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 79.64, take profit is at 79.39, and stop loss is at 79.90.
