The USDX is forming a higher high pattern on the daily chart, after a consolidation performed above the support zone around the level of 95.83. However, a breakout above the resistance zone of 96.38 will expose the index to test the zone of 96.91, which is still a key sell zone for the USDX. A pullback should not be discarded at this stage.
On the H1 chart, the USDX is trying to perform a rebound above the 200 SMA, which is acting as dynamic support. The current structure is still calling for more upside moves, as the index is still holding above the last important lows reached during the last week at least. The 200 SMA is turning neutral and the MACD indicator remains at the negative territory.
Daily chart's resistance levels: 96.38 / 96.91
Daily chart's support levels: 95.81 / 95.26
H1 chart's resistance levels: 96.15 / 96.30
H1 chart's support levels: 95.94 / 95.77
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 96.15, take profit is at 96.30, and stop loss is at 96.00.
