This week was a very bearish one for the USD Index, as it already tested the support level of 95.00. Anyway, as we said before in previous articles, those bearish moves are currently a part of a larger corrective move that we were expecting, because the overall trend is bullish and USDX is trading above the 200 SMA.
Now, on the H1 time frame, USDX is forming a lower low pattern below the resistance level of 95.34 and now it's looking to break the support zone of 94.70 in order to fall to the 94.05 level in the very short term. The 200 SMA is still bearish and we are still seeing enough bearish room which could favor intraday traders who want to ride the bearish bias.
Daily chart's resistance levels: 96.30 / 97.83
Dailychart's support levels: 95.00 / 93.95
H1 chart's resistance levels: 95.34 / 95.87
H1 chart's support levels: 94.70 / 94.05
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 94.70, take-profit is at 94.05, and stop-loss is at 95.34.
