Daily chart: The USDX had a profound fall below the support level of 80.11, but quickly the USDX made a bullish rebound that led it to get back into the range between 80.62 and 80.11 levels. However, the overall outlook for the USDX remains bearish, as this remains below the 200 SMA. If the USDX manages to break the support level of 80.11, it is expected to fall to the level of 79.19. The MACD indicator is still in neutral territory.
H4 chart: USDX made a bullish rebound at the bullish trend line near the level of 79.81. Now, the USDX is trying to consolidate back above the 200-day moving average. If USDX manages to break the resistance level of 80.49, it is expected to rise to the level of 80.65. On the other hand, if the USDX manages to consolidate below the bearish trend line near the level of 80.25, it will be expected to fall to the level of 80.09. The MACD indicator is in extreme oversold zone.
H1 chart: The USDX fell to touch the support level of 79.88, where this formed a fractal and also, USDX made a bullish rebound, which led it to consolidate back above the level of 80.35. However, our outlook remains bearish, so if the USDX manages to break the support level of 80.35, it is expected to fall to the level of 80.15. The MACD indicator is entering extremely overbought zone.
Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USD Index breaks a bearish candlestick; the support level is at 80.35, take profit is at 80.15, and stop loss is at 80.55.
