The USDX continues to extend a pullback towards the support level of 95.26. We expect a rebound at the current levels, but current weakness in the index could be calling for a breakout below that level to find strong support around the 200 SMA in the daily chart where a dynamic bottom is located. The MACD indicator is entering the negative territory.
On the H1 chart, the USDX has been forming a lower low pattern below the resistance level of 95.38. Bear in mind the support zone of 95.03 is still a strong one. That is why we are watching for some irregular price action over there. Anyway, if the index achieves in breaking that territory, it could extend downwards until the level of 94.61.
Daily chart's resistance levels: 95.83 / 96.38
Daily chart's support levels: 95.26 / 94.36
H1 chart's resistance levels: 95.38 / 95.94
H1 chart's support levels: 95.03 / 94.61
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 95.03, take profit is at 94.61, and stop loss is at 95.44.
