Analysis of USDX
Weak US data pushed the USDX to lower levels. The US retails sales data missed the expectations again . In the four-hour chart, support is found at 93.46 and 93.10. Lower levels yet to come for 93.25 and 93.00 in the near term and 92.00 later.
USD has been softening in the recent days. USD is trading higher against JPY. The recent USD rally against JPY, CAD, SGD, and CHF failed the bullish view in the near term. But only this pair has been sustaining in the structural bullish view. As we expected yesterday, before the price inches above 120.30, it is likely to re-test 119.60 and 119.40 today. So, we might see sub 119.00. The pair made a low at 119.00. The intraday trading pattern is framed between 119.00 and 119.40. In case today’s US data turns to be on the positive side, we request buying above 119.40 with a small target at 119.70. If not, we can see 118.85 and 118.60. The real problem for bulls is seen at 118.50 100Dema. The pair probably made a double bottom at 118.50 and 118.30. In case we see the pair around 119.00, small risky trade will be available for bulls. We recommend buying between 119.00 and 118.60 sl 118.50 closing basis or 118.30 intraday. This is just a hope trade, the probability is remote. The same strategy has been working well for bulls for a while.
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