Daily analysis of USDX for July 23, 2014

Daily chart: The USDX has made a breakout on the resistance level of 80.62, so the next target in this instrument is the resistance level of 81.50 in the long term, although it is likely that the USDX start forming a bullish pattern to that level. For now, the USDX could make corrective movements. The MACD indicator is in positive territory.

H4 chart: The USDX has consolidated above the support level of 80.60 and is likely to rise to the next target at the resistance level of 81.02. If the USDX does make a breakout at that level, it would be expected to rise to the resistance level of 81.40, where a bullish trend line is. The MACD indicator is in positive territory.

H1 chart: The USDX is trying to form a bullish pattern above the 80.72 level, because the next target is the resistance level of 80.93. The USDX has had a strong bullish momentum, so it is likely to make a breakout at that level and up to the resistance level of 81.09. The MACD indicator is entering negative territory.

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USD Index breaks with a bullish candlestick; the support level is at 80.93, take profit is at 81.09, and stop loss is at 80.78.