Daily chart: The USDX fell significantly below the level of 80.62, having formed a higher low pattern. Now, the next target for the USDX is the support level of 80.11. However, one would expect that the USDX will start forming another bearish pattern to continue falling. The USDX is very strong in its bearish bias, so it's highly recommended to follow the current trend. The MACD indicator is in negative territory.
H4 chart: The USDX is forming a bearish pattern below resistance level of 80.44. Near current levels, there is a bullish trend line that could serve as a solid support in the USDX. However, if the USDX does make a breakout in the support level of 80.09, it's expected to fall to the level of 79.81. The MACD indicator is in negative territory and the USDX remains below the 200 SMA.
H1 chart: The USDX has found strong resistance at the level of 80.35, so it is very likely that the USDX will continue forming a bearish pattern below that level and fall to the support level of 80.15. If the USDX manages to break the support level of 80.15, it's expected to fall to the level of 79.88. On the other hand, if the USDX manages to break the resistance level of 80.35, it's expected to rise to the level of 80.59. The MACD indicator is oversold.
Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USD Index breaks with a bearish candlestick; the support level is at 80.15, take profit is at 79.88, and stop loss is at 80.43.
