USDX approaching resistance, potential drop!

USDX is approaching our first resistance at 89.70 (horizontal overlap resistance, 61.8% Fibonacci retracement). A strong reaction might occur below this level, pushing price down to our major support at 89.25 (horizontal swing low support, 61.8% Fibonacci extension, 78.6% Fibonacci retracement).

Stochastic (55,5,3) is also approaching our major resistance and a bounce off this level might be a good precursor for a potential drop in price.

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