FX.co ★ USDX: Daily analysis for August 27, 2013

Daily chart: During yesterday's session, the USDX did not make any significant movements for the development of a stronger trend. By contrast, the current USDX movements show the market is surrounded by much uncertainty due to the current situation in Syria, so we must be aware of the reaction of the USDX to this situation. For now, it is most likely that the USDX continues to fall below the resistance at the 81.50 level. The MACD indicator is in positive territory, but it can be changed eventually.

H4 chart: The USDX is making a bullish rebound at the support level of 81.33. It is very likely that the USDX will continue trying to break this support to fall, eventually, to the support level of 80.94. However, it is not inconceivable that the USDX will attempt to climb to resistance at the 81.72 level again, where the moving average 200 is situatied. For now, the USDX remains below the SMA and the overall outlook remains bearish. The MACD indicator remains in negative territory.

H1 chart: The USDX continues trying to consolidate below resistance at 81.40 and below the SMA 200. In this chart, there is no clear trend yet, in which the USDX can be moved easily. However, we must bear in mind that if the USDX manages to break the resistance at the 81.58 level, it is likely that the USDX continues a strong bullish trend in the short term. Furthermore, if the USDX achieves in breaking the support level of 81.09, it is expected to drop to the level of 80.93.

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USDX Index breaks a bearish candlestick; the support level is at 81.09, take profit is at 80.92, and stop loss is at 81.25.