The USDX continues moving inside a range detween 95.83 and 95.26 on the daily chart ahead of the FOMC meeting. That is why we should trade this index very cautiously, as the USDX could start a rally towards the resistance level of 96.64 or a pullback until the support zone of 94.42, where the 200 SMA is located.
On the H1 chart, we can see a bearish structure placed below the 200 SMA, where we should be aware of further downside moves. However, there is a strong probability that we wouls see a bullish correction towards the 200 SMA again. If the support level of 95.20 is broken, the USDX will fall until the price zone of 94.75. The MACD indicator is trading at the negative territory.
Daily chart's resistance levels: 96.64 / 97.23
Daily chart's support levels: 95.83 / 95.26
H1 chart's resistance levels: 95.65 / 95.83
H1 chart's support levels: 95.41 / 95.20
Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the US Dollar Index breaks with a bearish candlestick; the support level is at 95.41, take profit is at 95.20, and stop loss is at 95.61.
