The USDX is extending losses below the 200 SMA on the daily chart with a big bearish Japanese candlestick. This should mean the index could start moving across the support level of 93.16 to find a bottom in the mid-term. However, there is still a high risk of a rebound at current levels, with a target around the level of 95.26.
On the H1 chart, the USDX is forming a lower low pattern, and the bearish bias is getting stronger. The next support is seen at the level of 93.73, where a breakout should happen towards the level of 93.26. Currently, we expect some corrective moves to take place.
Daily chart's resistance levels: 94.36 / 95.26
Daily chart's support levels: 93.16 / 92.33
H1 chart's resistance levels: 94.15 / 94.61
H1 chart's support levels: 93.73 / 93.26
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 seen at 93.73, take profit is at 93.26, and stop loss is at 94.21.
