FX.co ★ Silent-person | U.S. Dollar Index (USDX) in Forex Trading

Based on the H1 USDX chart, the Dollar Index is trading near 99.11, holding just above the 99.10 session low after a sustained downtrend from the 101.90 peak. The structure remains firmly bearish, with a clear sequence of lower highs and lower lows, indicating continued selling pressure. Immediate resistance lies at 99.17 and 99.30, while key support is at 99.11 (current level) and 99.10 (session low). A break below 99.10 would likely accelerate selling toward 99.00 and 98.90, while a recovery above 99.17 could signal a short-term bounce toward 99.30 and 99.40. Trading Plan – Bearish Bias: Enter short on a retest of 99.17–99.30 with a stop loss above 99.40 (approx. 0.10–0.20 points). Initial take-profit at 99.11, then 99.10 if bearish momentum resumes. If price breaks below 99.10 with strong volume, add to shorts targeting 99.00 and 98.90. Avoid long positions unless price closes above 99.40, which would invalidate the bearish structure and signal a potential shift toward 99.50. Trading Plan – Breakout Strategy: Monitor the 99.10–99.11 support zone. If price breaks below 99.10 with conviction, enter short with a target of 98.90 and stop above 99.20. Conversely, if price holds 99.10 and forms a bullish reversal pattern (e.g., hammer or bullish engulfing) with RSI divergence, consider a long scalp targeting 99.17–99.30 (tight stop below 99.00). This approach is only valid with strong volume and confirmation. Summary: The USDX is in a strong bearish trend, with key resistance at 99.17–99.30 and support at 99.10–98.90. The price action suggests further downside toward 98.70 if 99.10 breaks, especially with the series of lower highs and the lack of bullish catalysts. Momentum indicators likely favor sellers, but oversold conditions could trigger a short-term bounce—use those rallies to enter short positions at resistance. Strict risk management (1:2 risk-reward) is critical; adjust stops to breakeven once price reaches 99.10. The overall bias remains bearish unless price reclaims 99.40 and sustains above it, which would shift the outlook to neutral and open the door for a corrective move toward 99.50–99.60. Monitor U.S. economic data (e.g., NFP, CPI, Fed speeches) and geopolitical events for volatility spikes that could accelerate or reverse the current trend.