Daily chart: The USDX continues to fall. During yesterday's session, the USDX fell through support at the 81.50 level. It is very likely that the USDX achieves this support to break again due to strong weakness that has been following the U.S. dollar recently. If the USDX manages to break that level, it is expected to fall to the level of 81.05. On the other hand, it is likely that the USDX will attempt to climb up to the 200-day moving average near the 81.75 level, to begin to form a higher low pattern. The MACD indicator is in extreme overbought and entering negative territory.
H4 chart: Finally, the USDX broke the support at the 81.72 level, having formed a higher low pattern. Now, it is very likely that the USDX will fall to the support level of 81.33. If the USDX breaks that level, it will be expected to fall to the level of 81.17, where one bullish trendline will be placed. For now, we recommend keeping the sell orders in the USDX, because this is still below the 200-day moving average. The MACD indicator remains in negative territory.
H1 chart: The USDX continues to fall below the 200-day moving average, having broken off the support at the 81.58 level. Now, the USDX is trying to break the support at the 81.40 level with a higher low pattern. If it is successful, it is expected to fall to the level of 81.09, which would extend the bearish trend in the USDX for a few days. On the other hand, if the USDX manages to break the resistance at the 81.58 level, it will be expected to rise to the level of 81.73. The MACD indicator is in extreme oversold zone and entering neutral territory.
Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USDX Index breaks a bearish candlestick; the support level is at 81.40, take profit is at 81.09, and stop loss is at 81.71.