Daily analysis of USDX for September 02, 2015

The USDX has been forming a kind of higher high pattern above the support level of 95.26. The resistance zone of 95.83 is still the focus of concern on the daily chart. If the index does a breakout over there, it will reach the level of 96.64. However, the current corrective moves could push the index lower until the 200 SMA.

On the H1 chart, there is a double pattern formation above the support level of 95.33, but is still moving below the 200 SMA. However, we should expect a breakout at the level of 95.68, a move which could open the doors to the level of 96.09 is expected in the short term. Currently, a consolidation below 95.33 will expose the USDX to test the level of 95.00.

Daily chart's resistance levels: 95.83 / 96.64

Daily chart's support levels: 95.26 / 93.86

H1 chart's resistance levels: 96.08 / 96.39

H1 chart's support levels: 95.68 / 95.33

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 seen at 95.68, take profit is at 96.09, and stop loss is at 95.27.