On the daily chart, the USDX is currently trying to stay above the 200 SMA, because a decline is no longer strong on a short-term basis. However, this scenario could change when the index manages to form a lower low pattern to reach new lows. A rebound at the current stage could send the USDX to the resistance level of 95.26.
The index is recovering from the losses on an intraday basis and now is facing the resistance level of 94.61. In case of a breakout, the USDX is likely to move towards 94.98, where the 200 SMA is located. At the current stage, we can expect a pullback, which should not extend more than above the range zone of 94.73.
Daily chart's resistance levels: 94.36 / 95.26 Daily chart's support levels: 93.16 / 92.33 H1 chart's resistance levels: 94.61 / 94.98 H1 chart's support levels: 94.15 / 93.73 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 94.15, take profit is at 93.73, and stop loss is at 94.58.
The US dollar index made a bounce yesterday as we expected, but the price remained inside the downward sloping channel. There are great chances for a bigger upward reversal from current levels, but bulls need to be cautious as bears remain in control of a trend.
Blue lines - bearish channel The US dollar index remains below the Ichimoku cloud and inside the bearish channel. The price needs to break above 94.75 in order to get a bullish sign. However, the most important bullish sign is expected if the price breaks above the Ichimoku cloud in the 4-hour chart. Support is seen at 93.80.
Red line - weekly resistance Green line -weekly support The weekly candle remains inside the Ichimoku cloud trying to break above it. As I said yesterday, bulls need to break above the Ichimoku cloud in order to produce a bullish signal. The price remains inside the tightening trading range of a bullish flag. Important support is found at 92 and important resistance is seen at 95 and 97.
The US dollar index bounced last Friday towards the resistance areas of 94.75-95 as expected. The price remains below the Ichimoku cloud and we could see a downward reversal any time soon especially if we break below 94.55.
Green lines - bearish wedge The US dollar index has formed a bearish wedge pattern. If we break below 94.55 support, we should expect heavy selling to push the price towards new lows below 93.80. Resistance at 94.75-95 is important and even if we reach short-term higher highs, I expect the index to get rejected.
Red line - weekly resistance Green line -weekly support The weekly chart remains inside the Ichimoku cloud implying that the weekly trend is neutral. Bulls are trying to break above the Ichimoku cloud and only such a breakout will bring in more US dollar buyers. Weekly resistance is at 95.40 and weekly support is at 93.80. I would stay neutral.
The USDX has been recovering from losses above the support zone of 94.61 and now it is approaching the 200 SMA zone on the H1 chart. Bear in mind this territory could act as dynamic resistance for this index. If that happens, we could expect another fall towards the support level of 94.15. Another scenario could be the rally continuation above the resistance level of 94.98 with a short-term target at 95.30. The MACD indicator is at the neutral territory.
H1 chart's resistance levels: 94.98 / 95.30 H1 chart's support levels: 94.61 / 94.15 Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USDX breaks with a bearish candlestick; the support level is at 94.61, take profit is at 94.15, and stop loss is at 95.09.
There is a higher high pattern formation above the 200 SMA on the H1 chart, but the resistance zone of 94.98 could push lower the index towards the support level of 94.61. A breakout below this level will expose 94.15 as the next key support level. A mid-term bullish trend should start when the USDX breaks higher above the resistance zone of 95.30. The MACD indicator is entering the negative territory.
H1 chart's resistance levels: 94.98 / 95.30 H1 chart's support levels: 94.61 / 94.15 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 94.61, take profit is at 94.15, and stop loss is at 95.09.
The US dollar index has reached important short-term resistance levels and is expected to make a pullback. As long as the index is above 94.40, bulls have a chance of another bounce higher to try and break above the critical resistance at 95.80.
Red line - resistance Green line - support The US dollar index is below the Ichimoku cloud. Support is found at 94.40 and resistance is seen at 95.80. I expect the US dollar index to remain weak and push lower towards the green line support. A 4-hour close below 94.40 will open the way to new short-term lows.
Red line -weekly resistance Green line - weekly support The weekly candle is trying to break above the Ichimoku cloud upper boundary. However, a rejection here will push the index towards the green trend-line support. Long-term support is found at the 38% Fibonacci retracement, the level, which US dollar bulls should not ignore.
The US dollar index is testing short-term resistance and the US dollar is not as week as last week. There is a possibility of a breakout higher if bulls manage to push the price above 95. The longer-term trend remains neutral as the price continues to trade inside a big bullish flag pattern as shown in the weekly chart.
Black lines - wedge formation The US dollar index is trading inside the Ichimoku cloud in the 4-hour chart. This means that the short-term trend is neutral. The price is forming a wedge formation with boundaries at 95 and at 94.75. We expect a small rally or a sharp correction lower.
Black lines -bullish flag pattern The weekly chart remains inside the weekly cloud and inside the big bullish flag pattern. A trend is neutral over the last few months as can be seen in the weekly chart above. The US dollar index is trading sideways inside a trading range. Best strategy is to wait for a breakout before opening mid- to long-term positions.
On the H1 chart, the USDX has been trading sideways in the 200 SMA zone, so that is why we can see some uncertainty on this index. However, the support level of 94.61 was tested, but the price action was rejected. A breakout above the resistance level of 94.98 will reinforce the view of a possible bullish continuation, which could last for several days more. The MACD indicator is still entering the neutral territory.
H1 chart's resistance levels: 94.98 / 95.30 H1 chart's support levels: 94.61 / 94.15 Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USDX breaks with a bearish candlestick; the support level is seen at 94.61, take profit is at 94.15, and stop loss is at 95.09.
The US dollar index is showing some short-term reversal signs to the upside but the longer-term view remains neutral as price remains trapped inside the trading range of a weekly bullish flag and inside the weekly cloud.
Red line - resistance Blue lines - bullish channel The US dollar index is inside a bullish short-term target and breaking above the 4-hour chart Ichimoku cloud. The price is moving in a short-term bullish trend targeting the medium-term resistance at the red trend line. An important resistance area is seen between 95.50 and 95.60.
Green line - support Red line - resistance The weekly candle is trying to break above the Ichimoku cloud. A close above it will be a bullish sign that will most probably push the index towards the red weekly resistance level. The longer-term trend remains neutral as the price remains inside the bullish flag.
The USDX is getting outside the sideways range established around the 200 SMA zone in the H1 chart, but the index could perform a rally towards the resistance level of 95.30. If the USDX succeeds in breaking this level to the upside, it is expected to test the zone around 95.60, which confirm that the short-term bullish trend has started already. The MACD indicator remains at the positive territory.
H1 chart's resistance levels: 95.30 / 95.60 H1 chart's support levels: 94.98 / 94.61 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 at 94.98, take profit is at 94.61, and stop loss is at 95.36.
