On the daily chart, the USDX is extending losses towards the support level of 95.26, afte making a pullback around the level of 95.83. That is why we should be cautious when the index tests that zone, because a breakout to the downside could happen there. The 200 SMA is
still neutral, but it could turn higher eventually .
The index is forming a lower low pattern
on the H1 chart, below the resistance level of 95.54, and now the
downside target is is seen at the level of 95.41. If the USDX does a
breakout there, it could test the level of 95.20 in coming hours.
In this time frame, the 200 SMA is turning bearish, so we should be aware
of those moves downwards.
resistance levels: 96.64 / 97.23
support levels: 95.83 / 95.26
H1 chart’s resistance
levels: 95.54 / 95.80
H1 chart’s support levels: 95.41
Trading recommendations for today:
Based on the H1 chart, place
orders only if the US Dollar Index
level is at
take profit is at
and stop loss is at 95.61.
The material has been provided by InstaForex Company – www.instaforex.com