In its upward movement, USDX formed a clear up channel and overcame a significant resistance at 94.0. This level 3 times served as a strong resistance, and at the moment is a mirror support.
11 days USDX is in the range of 94.000-95.040. Last Friday there was an unsuccessful attempt to get out of the rising channel. Today, the index is in a narrow range, which indicates a possible strong volatility in the coming days.
Looking at the M30 we see the range of the last two trading days (blue rectangle). Exit from this range will set the tone for the movement in the foreign exchange market for the near future. Let’s pay attention to the level of 94.300. The index interacted with it 6 times (purple line). In case of breakdown of this level, the index will leave the rising channel and go to support. In case of breakdown of support and consolidation under the level of 94.000, we will see growth of all major currency pairs against the USD on the market. An alternative scenario assumes that the uplink will hold the index and, after retreating from it, the USD will strengthen and resist resistance at 95.040. It should be noted that the support approximately corresponds to EURUSD = 1.16780, and the resistance EURUSD = 1.15600.
The first signal about the direction of movement USDX will give us an interaction with the level of 94.300, so we are closely watching it.