Outlook in USDINDEX remains neutral with risk to the downside , as long as 88.77 resistance holds on a 4 hour closing basis , support comes at the 88.17 levels , a clear break would open 87.80 next , further down will pave the way towards the 87.30 /86.80 levels.
On the upside , resistance comes at the 88.45 levels ahead of the 88.77 levels (main), stability below this level will keep the pair under pressure , however , sustained trading above the 88.77 levels will recapture the 89.25/89.54 levels.a halt could be seen , but a break would open 90.00 next , further gains will target the 90.50/91.00 levels.
In all , as long as 88.77/88.45 resistance holds on a 4 hour closing basis , the USDINDEX remains under pressure with risk to the downside towards the 88.17/87.80 levels , a clear break above 88.71 will restore the upside momentum and open 89.54/90.00 levels..
On the daily time frame as long as 88.90 resistance holds on a daily closing basis , the US dollar index remains in a corrective pullback mode and further down couldn’t be ruled out , break of 88.90 on a daily closing basis will restore the upside momentum and open 89.54/90.00 levels…
[su_quote]The US Dollar Index (USDX) is an index (or measure) of the value of the United States dollar relative to a basket of foreign currencies. Its highest impact is against 6 currencies , Euro (EUR) , Japanese yen (JPY) , Pound sterling (GBP) , Canadian dollar (CAD) , Swedish krona (SEK) and Swiss franc (CHF).. Its highest impact is against the EURO , the lowest is against the CHF . Conclusion : The US dollar index has an inverse relationship with these currencies , for example , when the USDINDEX goes down , the USD is down against the EURO , as a result the EURUSD goes up , when the USDINDEX is down , the USD is down against the JPY, as a result the USDJPY goes down and so on !! USD INDEX can be used as an additional tool for further confirmation If you trade these pairs especially EURUSD.[/su_quote]