USDX is waiting for a catalyst that helps to drive the index towards new highs or to continue with the bearish bias across the board. To the downside, if it manages to break below last Friday’s lows, then we can expect another decline to test the support level of 93.97, while to the upside, the critical 200 SMA should be broken in order to allow gains towards November 7th highs.
H1 chart’s resistance levels: 95.14 / 95.85
H1 chart’s support levels: 94.60 / 93.97
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 95.14, take profit is at 95.85 and stop loss is at 94.47.
The material has been provided by InstaForex Company – www.instaforex.com