The general bias on the USDX remains very bullish, as there is not any big obstacle to block a bullish trend. This instrument has already hit new multi-year highs and the closest resistance level is seen at 99.19. If the USDX does a breakout on that level, it is likely to reach the next target at 100.49.
In the H1 chart, the USDX has already broken the level of 97.93 and is forming a bullish pattern in order to reach the resistance level of 99.13 in a short term. We can see its upward movement for now, as the USDX still has enough bullish momentum on the lower time frame H1 chart. The MACD indicator does not show overbought levels.
Daily chart’s resistance levels: 99.19 / 100.49
Daily chart’s support levels: 98.01 / 96.96
H1 chart’s resistance levels: 99.13 / 100.00
H1 chart’s support levels: 97.96 / 96.85
Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USD Index breaks with a bullish candlestick; the resistance level is at 99.13, take profit is at 100.00, and stop loss is at 98.30.
The material has been provided by InstaForex Company – www.instaforex.com