On the daily chart, the USDX continues to trade below the resistance level of 96.38, where a pullback is currently taking place. That is why we expect a fall to the support level of 95.83. Currently, a breakout above the level 96.38 is expected to push the index higher until new 2-month highs at least. The MACD indicator is at the positive territory.
The index is currently performing a correction from the resistance level of 96.51 and now it is testing the support zone of 96.15. On the H1 chart, we should note a bullish pattern formation which could push the USDX higher across new highs, becauses bullish momentum seems to be still strong in an intraday basis.
Daily chart's resistance levels: 96.38 / 96.91
Daily chart's support levels: 95.81 / 95.26
H1 chart's resistance levels: 96.35 / 96.51
H1 chart's support levels: 96.15 / 95.94
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 96.35, take profit is at 96.51, and stop loss is at 96.19.
