On the daily chart, bullish reaction is observed above the support level of 95.26 and we could be in front of a possible rally, which could be set up towards the resistance zone of 96.64 in coming days. The 200 SMA is turning neutral in this time frame, as the index continues to extend its rebound.
There is a strong resistance placed around the level of 96.40 on the H1 chart and the USDX will need to overcome that zone in order to perform new rallies. We should note the double bottom pattern formed below the 200 SMA a couple of days ago. Immediate resistance is still placed at the level of 96.09. The MACD indicator is entering the neutral territory.
Daily chart's resistance levels: 95.83 / 96.64
Daily chart's support levels: 95.26 / 93.86
H1 chart's resistance levels: 96.09 / 96.34
H1 chart's support levels: 95.68 / 95.33
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 96.09, take profit is at 96.34, and stop loss is at 95.85.
