FX.co ★ USDX: Daily analysis for September 18, 2013

Daily chart: The USDX continues forming a higher low pattern, above the bullish trendline and below the resistance at the 81.50 level. If the USDX manages to break the bullish trendline, it is expected to fall to support at the 80.62 level, to strengthen the current bearish trend, because the USDX still remains below the 200-day moving average. On the other hand, it is likely that the USDX could conduct a bullish rebound at current levels and up to resistance at 81.50. The MACD indicator remains in negative territory.

H4 chart: The USDX has not filled the gap that is near the 81.55 level. The USDX still remains below the level of resistance in the 81.33 and above the support at the level of 80.94. If the USDX manages to break this support, it is expected to fall to the level of 80.97. Moreover, it is likely that the USDX could break the resistance level at 81.33 and rise to the 81.72 level, where the SMA 200 is. The MACD indicator remains in positive territory.

H1 chart: The USDX is maintained within the range between the 81.40 and 81.09 levels. If the USDX achieves that support level at 81.09, it is expected to fall to the level of 80.93 and the USDX could define his overall trend for the next few days. On the other hand, all possibilities are in a recovery of the USDX, which is expected to rise to resistance at 81.40, close to the 200-day moving average, to fill the gap. The MACD indicator is entering neutral 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 81.09, take profit is at 80.93, and stop loss is at 81.25.