On the daily chart, the USDX is facing the strong resistance zone around the level of 98.29. This territory is the keyone for the current bullish trend development, and that is why we should be cautious when trading this Index based on the data provided by this time frame, as it could make a pullback below thelevel of 97.57.
The USDX is forming a higher high pattern above the support zone of 96.75, which is now looking to break the resistance zone of 98.09, in order to reach a high around the level of 98.40. The 200 SMA on the H1 chart is still pointing to the upside, so bulls are getting stronger, at least on a short-term basis. However, the MACD indicator is in the negative territory.
Daily chart's resistance levels: 98.29 / 99.16
Daily chart's support levels: 97.57 / 96.57
H1 chart's resistance levels: 98.09 / 98.40
H1 chart's support levels: 97.65 / 97.12
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 98.09, take profit is at 98.40, and stop loss is at 97.77.
