Daily chart: The USDX made a bearish rebound near the 80.90 level. However, USDX remains within the range between the levels of 81.50 and 80.62, so that the trend is not yet defined in the USDX. If the USDX manages to break the support level of 80.62 , it's expected to fall to the level of 80.11, which was the beginning of a strong bearish trend in the USDX. The MACD indicator is still in negative territory. For now, we recommend placing swing orders on the USDX due to this uncertainty about the trend.
H4 chart: The USDX found resistance at the 80.94 level, but it stays close to the 200 day moving average, so our bullish outlook possibly come to rule in the coming hours. Now, the USDX is forming a higher low pattern and if the USDX manages to break the support level of 80.49, it's expected to fall to the level of 80.09, which would be a steep drop. The MACD indicator is still in negative territory.
H1 chart: The USDX is consolidating below the 200 SMA and now the USDX is building a strong bearish pattern (higher low pattern) below resistance at the 80.73 level, where the is based the 200 day moving average. If the USDX manages to break the support level of 80.59, it's expected to fall to the level of 80.35. The MACD indicator is entering extreme oversold zone and in positive territory, so we must be careful with the USDX.
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 80.59, take profit is at 80.35, and stop loss is at 80.83.
