The daily outlook is telling us about the possibility of a sideways consolidation in favor of a bullish bias. Currently, the USDX is doing a kind of pullback and is testing the support zone of 96.97. From that level, it could start another rally which could last until the resistance level of 98.08, where another strong resistance is located.
In our short-term outlook, the Index is still doing some corrective moves in favor of a very strong bullish bias in the H1 chart. The current structure is still calling to the upside, as the USDX is trading above the 200 SMA. For now, we should expect a test of the resistance level of 97.60, but it won't be strange to see a pullback until the level of 96.90.
Daily chart's resistance levels: 98.08 / 98.64
Daily chart's support levels: 96.97 / 95.74
H1 chart's resistance levels: 97.16 / 97.97
H1 chart's support levels: 97.16 / 96.90
Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the US Dollar Index breaks with a bullish candlestick; the resistance level is at 97.60, take profit is at 97.97, and stop loss is at 97.25.
