FX.co ★ USDX daily analysis for July 4, 2013

Daily chart: The USDX made a strong bearish rebound in the resistance at the 83.74 level and is now trying to break the support at the 83.22 level. If it is successful, it is expected to fall to the level of 82.51. However, we must bear in mind that these movements may be the formation of a lower high pattern, so that the USDX continues to rise. If the USDX managed to break the resistance at 83.74 level, it would be expected to rise to the level of 84.29. The MACD indicator is in an extremely overbought area, so we should be cautious when trading today, also, keep in mind that the U.S. banks will be closed for today for a public holiday.

H4 chart: The USDX has fallen to a major support at the level of 83.17. If the USDX manages to break that level, it is expected to fall to the level of 82.15, which is close to the 200 day moving average. However, it is possible that the USDX will conduct a bullish rebound at current levels. If the USDX managed to break the resistance at 83.49 level, it would be expected to rise to the level of 83.35. The MACD indicator remains in a negative territory.

H1 chart: Finally, the USDX again managed to break the support level at 83.27 and continues to fall with objective to support the level of 82.97, very close to the 200 day moving average. For today, expect low volatility movements, because the American session will be very slow due to Independence Day in the United States, so I do not recommend placing intraday orders in the USDX.

Fundamental outlook: As mentioned above, today the United States is celebrating is a holiday, so banks and major stock exchanges of the country will be closed.

Trading recommendations for today: I recommend keeping the sell orders in the USDX Index with take profit at the support of 82.97.