23.07.201501:24 Forex Analysis & Reviews: Daily analysis of USDX for July 23, 2015

Long-term review

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At daily chart, the USDX is currently inside a corrective range, where we are currently watching downside moves in favor of the overall bullish bias. There is also a higher high pattern formation in this time frame and bear in mind that a breakout around the level of 97.57 will open doors to the resistance zone of 98.29.

The short-term picture is giving us a possible buy trade idea, because the Index is finding dynamic support at the 200 SMA on the H1 chart. However, the USDX is dealing with the resistance level of 97.53. If the Index achieves a break in that zone, it would be expected to test the zonr around 97.77 in coming days. The MACD indicator is entering the negative territory.

Daily chart's resistance levels: 97.57 / 98.29

Daily chart's support levels: 96.57 / 95.63

H1 chart's resistance levels: 97.53 / 97.77

H1 chart's support levels: 97.12 / 96.73

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 97.53, take profit is at 97.72, and stop loss is at 97.31.

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