Daily chart: The USDX continues forming a bearish pattern (higher low) below the resistance level of 80.62. It is very likely that these movements continue throughout the week as the USDX has had a fairly quiet week start, considering the extreme volatility that occurred last week. However, if the USDX manages to break the 80.62 level, it is expected to rise to the level of 81.00. The MACD indicator is entering extreme overbought zone and in neutral territory.
H4 chart: The USDX is finding dynamic support on the 200 day moving average and remains in a low range. If the USDX manages to break the resistance level of 80.83, it is expected to rise to the level of 80.99. On the other hand, we must consider that if the USDX manages to consolidate below the 200 SMA, would be the beginning of a prolonged bearish trend in this chart. The MACD indicator is entering extreme oversold zone.
H1 chart: The USDX remains below the 200 day moving average, taking into account that the USDX found dynamic resistance at that level. Now, the USDX is trying to break the support level again at 80.59. If successful, it is expected to fall to the level of 80.35. Furthermore, if the USDX achieves in breaking the resistance level of 80.73, it's expected to rise to the level of 80.93. The MACD indicator remains in positive territory and showing a bearish divergence.
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.В
