28.07.201501:33 Forex Analysis & Reviews: Daily analysis of USDX for July 28, 2015

Long-term review

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The US Dollar Index continues to extend the bearish correction and now it is facing the support zone of 96.57. If a breakout takes place there, it would be expected to visit the level of 95.63 in coming days. For now, we should expect rebounds in order to correct the bearish bias in a minor degree. The MACD indicator is entering the negative territory.

On the H1 chart, there is a bearish pattern formation below the resistance level of 96.73. Currently, we're expecting a breakout in the support zone of 96.33, which could open the road to test the next bearish focus around the level of 95.67. There is a strong intraday bearish structure in place and it should be traded very cautiously.

Daily chart's resistance levels: 97.57 / 98.29

Daily chart's support levels: 96.57 / 95.63

H1 chart's resistance levels: 96.73 / 97.12

H1 chart's support levels: 96.33 / 95.67

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 97.53, take profit is at 97.72, and stop loss is at 97.00.

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