Daily chart: The USDX has dropped below the 200 SMA and this can be a clear sign that the USDX has found strong resistance at the level of 81.35. If the USDX continues to weaken, it is expected to fall to a support level at 80.62 and if the USDX achieves to perform a breakout at that level, would be expected to fall to the level of 80.11. The MACD indicator is entering neutral territory.
H4 chart: In this chart, the USDX has fallen to the level of support at 80.83, where the 200-day moving average is located. During the U.S. session yesterday, the USDX found resistance at the 81.19 level. If the USDX consolidates below the level of 80.83, it's expected to fall to the level of 80.48. On the other hand, if the USDX manages to break the resistance level of 80.99, it is expected to rise to the level of 81.19. The MACD indicator is still in negative territory.
H1 chart: The USDX is forming a bearish pattern (higher low) after finding resistance at the level of 81.19, where a fractal has been formed. However, it is very likely that the USDX make a strong bullish rebound at the current levels, as the USDX is near the 200 SMA. If the USDX manages to break the resistance level of 80.93, it is expected to rise to the level of 81.09. The MACD indicator is in extremely oversold zone and entering neutral territory.
Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USD Index breaks with a bullish candlestick; the resistance level is at 80.93, take profit is at 81.09, and stop loss is at 80.77.
