Daily analysis of USDX for July 21, 2015

On the daily chart, The USDX is reaching new monthly highs above the key support level of 97.57 and it is expected to test the level of 99.15, when a breakout takes place above 98.29. However, we could expect a pullback when the Index achieves that territory, because it is overbought in lower time frames.

USDXDaily.png

The USDX is trading sideways below the
resistance level of 98.22, which is a very important zone in the
current bullish intraday structure. If USDX breaks that level, it
would be expected to test the next high around 99.02. The 200
SMA is slightly bullish, and the MACD indicator remains at positive
territory on the H1 chart.

USDXH1.png

Daily chart’s
resistance levels: 98.29 / 99.15

Daily chart’s
support levels: 97.57 / 96.57

H1 chart’s resistance
levels: 98.22 / 99.02

H1 chart’s support levels: 97.72
/ 97.53

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 97.72,
take profit is at
98.22,
and stop loss is at 97.41.

The material has been provided by InstaForex Company – www.instaforex.com

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