The downside continues to be favored on the daily chart, as the USDX tries to break the key support zone of 96.60, with target at the level of 95.53. As we wrote in the last articles, all the moves above the 200 SMA on this timeframe are only corrective ones, because the USDX is still bullish in an overall outlook. Anyway, the MACD indicator is still at negative territory, so be cautious.
The support level at 96.63 rejected the instrument during the Tuesday's session, and we expect the USDX to get recovered and try to make a breakout at the resistance level of 97.19. If successful, the USDX could gain positions until the resistance zone of 97.93, where is located the 200 SMA at the H1 chart.
Daily chart's resistance levels: 98.01 / 99.19
Dailychart's support levels: 96.60 / 95.53
H1 chart's resistance levels: 97.19 / 97.93
H1 chart's support levels: 96.63 / 96.24
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 97.19, take profit is at 97.93, and stop loss is at 96.46.
