On the daily chart, the USDX is currently consolidating above the support zone of 95.83, focusing on the resistance level of 96.38. It is expected to see a bullish formation during the process, because the index is still strong. However, the pullbacks should take the USDX until the level of 95.26. The MACD indicator is entering the positive territory.
The index is performing a bullish consolidation above the 200 SMA on the H1 chart, because the USDX has been trading upwards during the day. This rally held during Monday's session has already given us a path, which will be followed by the USDX during this week at least, so be aware of further rallies. The MACD indicator is reaching overbought conditions.
Daily chart's resistance levels: 96.38 / 96.91
Daily chart's support levels: 95.81 / 95.26
H1 chart's resistance levels: 95.94 / 96.15
H1 chart's support levels: 95.67 / 95.34
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 95.67, take profit is at 95.34, and stop loss is at 95.99.
