FX.co ★ USDX: Daily analysis for September 11, 2013

Daily chart: The USDX found strong support at the 200-day moving average, where it is forming a higher low pattern to continue falling toward the support at the 81.50 level. However, this can be a simple corrective movement in favor of the overall bullish trend in the USDX. If the USDX manages to break the support at the 81.50 level, it is expected to fall to the bullish trendline near the 81.20 level. On the other hand, if the USDX executes a bullish rebound at the moving average of 200, it is expected that rises to the resistance level of 82.51. The MACD indicator is in neutral territory and in extreme overbought area.

H4 chart: The USDX is maintained within the range between the 81.94 and 81.72 levels. Below the 200-day moving average, the USDX is forming a higher low pattern. If the USDX achieves in breaking the support at the 81.72 level, it will be expected to drop to the level of 81.33. On the other hand, if the USDX manages to break the resistance 81.94 level, it will be expected to rise to the level of 82.49. For now, the bearish outlook is still alive in the USDX, because this is below the 200-day moving average. The MACD indicator is entering neutral territory and in extreme oversold zone.

H1 chart: The USDX remains below the level of resistance at 82.02 and SMA 200. The support at the 81.73 level remains very strong and difficult to break, so we must be careful with this important level. If the USDX achieves in breaking the support at the 81.73 level, it will be expected to drop to the level of 81.59. On the other hand, if the USDX again breaks the resistance at the 82.02 level, it may invalidate our bearish outlook and the USDX could rise to resistance at the 82.32 level. The MACD indicator remains in positive territory.

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 81.73, take profit is at 81.58, and stop loss is at 81.89.