On the H1 chart, the USDX is trading with a very strong bullish bias after the FOMC meeting on Wednesday. Currently, we expect a pullback towards the support zone of 97.51, which is a part of a higher high pattern in the H1 chart. If a corrective move continues to go deeper, a test around the support level of 97.16 should be expected. The MACD indicator is still at the positive territory.
H1 chart's resistance levels: 97.79 / 98.11 H1 chart's support levels: 97.51 / 97.16 Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USDX breaks with a bullish candlestick; the resistance level is seen at 97.79, take profit is at 98.11, and stop loss is at 97.48.
The short-term outlook is calling for another deeper correction towards the support level of 96.71 where it is also expected to perform a rebound, because of the current 200 SMA location. By the way, if bulls are still getting favored in coming days (next week), a rally should be expected to test the zone of 98.00. The MACD indicator is still on the negative side, but bear in mind the moving average on the H1 chart is slightly bullish.
H1 chart's resistance levels: 97.51 / 97.77 H1 chart's support levels: 97.16 / 96.71 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 seen at 97.51, take profit is at 97.77, and stop loss is at 97.25.
The US dollar index as expected to pull back after a breakout above the important resistance trend line. The price is back testing the breakout area with potential of a deeper pullback as I believe that the entire move from 93.80 is completed and we have entered a corrective phase before the next upward move.
Red line - resistance The US dollar index is trading above the Ichimoku cloud back testing previous highs and the breakout area. Support is found at the 38% Fibonacci retracement and I believe we should expect the pullback to at least reach that level.
As I said yesterday it is important to see where this weekly candle closes. We have seen the weekly candle break above the weekly resistance but it is also important to see if we have a rejection. A rejection at current prices could push the index even towards 95 again. The level of 93.80 is stop for bulls.
The US dollar index, as I had mentioned last week, finished the upward move from 93.80 and has started its pullback. The 38% Fibonacci retracement has not been reached yet and I expect at least a minimum retracement to that area.
Red line - resistance The US dollar index is below the red trend-line resistance and below the kijun-sen on the 4-hour chart. This means that the price should at least push towards the Ichimoku cloud at 96.40 and the 38% Fibonacci retracement.
Red line - weekly resistance Green line -weekly support Despite breaking above the weekly resistance, the US dollar index closed below it showing some initial signs of a rejection. This is an important junction for bulls and bears. I expect the price to pull back even further, even towards the Ichimoku cloud near 95 before resuming upwards. A weekly close above last weeks' high will be an important bullish signal.
USDX is trying to make a rebound above the 200 SMA on H1 chart, and that could happen in the short-term because of the current fractal structure placed on this Index. A breakout above the 97.16 level will open the doors to the 97.51 price zone. In another scenario, bears could take control of the short-term bias when the USDX is making a lower low pattern below the 200 SMA this week. MACD indicator is on the positive territory
H1 chart's resistance levels: 97.16 / 97.51 H1 chart's support levels: 96.71 / 96.40 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 97.16, take profit is at 97.51, and stop loss is at 96.81.
The US dollar index remains in a corrective phase. The price remains above the Ichimoku cloud, but we could see a pullback towards the 38% retracement this week. The longer-term trend remains bullish and there are signs that we are about to exit the sideways move we are in for the last few months.
Red line - Resistance TL The US dollar index is below the kijun-sen and above the Ichimoku cloud. The best strategy is to remain neutral for now and if the price pulls back, we will be interested to open long positions with 93.80 stop and new highs as the target. Support at 95.40 is very important and it would be ideal to see a pullback to that area.
Red line - weekly resistance Green line - weekly resistance The weekly chart shows how bulls managed to break above the downward sloping red trend-line resistance but could not hold on to it. The price got rejected and we are probably going to make a pullback towards the weekly kijun-sen at 95.50 before resuming the uptrend. Eventually, I expect the US dollar index to start a new upward move that will bring the index back above 101-102.
On H1 chart, USDX is looking to perform another rally towards new highs, because in the short term the index will find dynamic support at the 200 SMA, very close to the key support around the 96.71 level. That's why our upside target is still placed at the 97.16 level, where a breakout should happen in order to see a test of the 97.51 resistance zone. MACD indicator is still favoring bulls' force (the positive territory).
H1 chart's resistance levels: 97.16 / 97.51 H1 chart's support levels: 96.71 / 96.40 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 97.16, take profit is at 97.51, and stop loss is at 96.81.
The US dollar index held support yesterday and has staged an upward move towards recent highs. The trend is bullish and the weak pullback confirms how strong the bullish trend is. New highs before the year end are on the cards.
Blue horizontal line - support The US dollar index is trading above the Ichimoku cloud on the 4-hour chart and it has also broken above the kijun-sen. It means that we should expect new highs above 97.90 soon. Support is critical at 96.60. If it is broken, we should expect a push lower towards 95.50.
Red line - weekly resistance Green line - weekly support The weekly candle has once again been broken above the weekly resistance. We must be patient and see where this week's candle closes. The chances are in favor of the bullish scenario and the continuation of this upward move over the coming weeks to new highs. Weekly support is at 95.
USDX is forming a higher high pattern above the support level of 97.16 in an effort to reach new highs this week. 200 SMA is favoring this scenario, because it's slightly bullish. Besides, bear in mind the current structure is configured to visit the highs from the October 28th session, as the Index found dynamic support over that moving average. MACD indicator is entering the negative territory as H1 chart shows.
H1 chart's resistance levels: 97.16 / 97.51 H1 chart's support levels: 96.71 / 96.40 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 97.16, take profit is at 97.51, and stop loss is at 96.81.
USDX is forming a higher high pattern above the support level of 97.16 in an effort to reach new highs this week. 200 SMA is favoring this scenario, because it's slightly bullish. Besides, bear in mind the current structure is configured to visit the highs from the October 28th session, as the Index found dynamic support over that moving average. MACD indicator is entering the negative territory as H1 chart shows.
H1 chart's resistance levels: 97.16 / 97.51 H1 chart's support levels: 96.71 / 96.40 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 97.16, take profit is at 97.51, and stop loss is at 96.81.
