The USDX is currently finding dynamic support over the 200 SMA on the daily chart, after its losses after the Fed's meeting last week. Currently, we expect a breakout over the resistance level of 95.26, which would expose the zone of 95.83 as the next area for sellers. The MACD indicator is entering the negative territory again.
On the H1 chart, the index is looking for an opportunity to move lower towards the support level of 94.97, because the 200 SMA is offering dynamic resistance in this time frame. After that move, the USDX could try a breakout below the support level of 94.97 in order to reach the next zone around the level of 94.57 on a short-term basis.
Daily chart's resistance levels: 95.26 / 95.83
Daily chart's support levels: 94.42 / 93.18
H1 chart's resistance levels: 95.34 / 95.67
H1 chart's support levels: 94.97 / 94.57
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 94.97, take profit is at 94.57, and stop loss is at 95.37.
