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07.10.2015 01:17 AM
Daily analysis of USDX for October 07, 2015

The USDX is trying to perform a pullback towards the support zone of 95.26, where a rebound should be expected on the daily chart. This scenario could unfold in the near term as the index remains trapped above the 200 SMA in this time frame. However, a breakout below the level of 95.26 will expose the zone of 94.36.

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On the H1 chart, we should note a strong pullback from the resistance level of 96.15, where is the zone of 200 SMA, and now the index could test the support zone of 95.38. If the USDX does a breakout below that territory, it will fall to the level of 95.03. The 200 SMA is pointing to the downside, and the MACD indicator is entering the negative territory.

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Daily chart's resistance levels: 95.83 / 96.38

Daily chart's support levels: 95.26 / 94.36

H1 chart's resistance levels: 95.94 / 96.15

H1 chart's support levels: 95.38 / 95.03

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the US dollar index breaks with a bullish candlestick; the resistance level is at 95.94, take profit is at 96.15, and stop loss is at 95.73.

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