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Daily chart: The USDX is still facing a resistance at the 81.50 level. However, this could be the formation of a lower high pattern, but this is still not sure. It is possible that the USDX to fall to the bullish trend line at the level of 81.05. If the GBPUSD manages to break it, it would be expected to fall to support at the 80.62 level. On the other hand, if the USDX manages to break the resistance at 81.50 level, would be expected to rise to the level of 81.75, which houses the SMA 200. The MACD indicator remains in positive territory.
H4 chart: The USDX remains above support at 81.33 level and the bearish trend line close by. If the USDX manages to break this support, it is expected to fall to 80.94 level a very strong support level. On the other hand, if the USDX managed to break the resistance 81.72 level would be expected to rise to the level of 81.94, above the SMA 200. For now, the overall outlook for the USDX is still bearish, because the MACD indicator is in extreme overbought and entering negative territory.
H1 chart: The USDX is forming a higher low pattern, below the SMA 200 and the resistance level at 81.40. It is very likely that the USDX conduct a bearish rebound at current levels and this fall to support at the 81.09 level. However, it is also possible that the USDX break the resistance level at 81.40 and rise again until the resistance level at 81.58. The MACD indicator is extremely oversold and entering neutral territory, so we must be very cautious.
Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USDX Index breaks a bearish candlestick; the support level is at 81.09, take profit is at 80.92, and stop loss is at 81.25.
Source: www.instaforex.com
