FX.co ★ USDX: Daily analysis for September 20, 2013

Daily chart: The USDX is forming a higher low pattern below the resistance level of 80.62 and is very likely that the USDX will fall below the support level at 79.19. On the other hand, if the USDX manages to break the resistance at the 80.62 level, it would be expected to rise to the level of 81.00. However, we recommend you follow the bearish trend for the USDX, due to these bearish patterns that have formed in the last hours. The MACD indicator is in negative territory and the USDX remains below the 200 day moving average.

H4 chart: The USDX remains below a bearish trend line near the resistance at 80.50 and above the support at the level of 80.09. If the USDX manages to break this support, we would expect that the USDX continues to drop to the level of 79.50. On the other hand, if the USDX manages to break the resistance level at 80.50, it would be expected to rise to the level of 80.75. The MACD indicator is in extreme oversold zone and entering neutral territory, so the USDX could enter a period of "uncertainty" in the trend.

H1 chart: The USDX is trying to consolidate below the resistance at the 80.35 level, because in yesterday's session this made a bullish rebound at the support 80.15 level. If the USDX manages to break the resistance at the 80.35 level, it would be expected to rise to the level of 80.59. Furthermore, if the USDX achieves in breaking the support level of 80.15, it's expected to drop to the level of 79.88, a very strong support level. The USDX remains below the 200 day moving average and the MACD indicator is entering extremely overbought zone and in 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 80.15, take profit is at 79.88, and stop loss is at 80.43.