The USDX had a strong momentum within the bullish trend above the level of 85.90, the H4 chart. Now this instrument is attempting to consolidate above the 86.70 level and then go up to the resistance level of 87.00. However, caution should be exercised, because the USDX could make a pullback at current levels.
H4 chart's resistance levels: 86.70 – 87.00
H4chart's support levels: 85.85 – 85.06
In the H1 chart, the USDX did a bullish consolidation above the support level of 86.17, so far, this instrument is forming a higher high pattern below the resistance level of 86.72. The USDX would have to make a breakout at that level for rise to the resistance level of 87.00, which would be a record high that the USDX has not touched for several months. The MACD indicator is in neutral territory.
H1 chart's resistance levels: 86.72– 87.00
H1 chart's support levels: 86.17 – 85.95
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 86.73 take profit is at 87.00, and stop loss is at 86.44.
