FX.co ★ USDX: Daily analysis for September 23, 2013

Daily chart: The USDX continues forming a higher low pattern below the 80.62 level. For this week, it is likely that the USDX finishes forming this bearish pattern and continues falling to support at the 79.19 level, because this met with the resistance at the 80.62 level. However, the USDX has not yet formed a fractal up, which could mean that the USDX would rise above the level of 80.62. We recommend following the general trend of the USDX, because this still remains below the 200-day moving average and the MACD indicator remains in negative territory.

H4 chart: The USDX still remains within the range between 80.50 and 80.09 levels where a higher low pattern is forming. It seems that the USDX could break the support level at 80.09 and falling to the psychological level of 79.00. However, we must remember that this could lead to a change in the trend, because the USDX has formed two important fractal near the support level at 80.09. However, if the USDX manages to break the resistance at the 80.50 level, it would be expected to rise to the level of 80.75. The MACD indicator remains in positive territory and the USDX remains below the 200-day moving average.

H1 chart: The USDX has been consolidated under resistance at 80.59 level, after the USDX could broke the resistance at the 80.35 level. If the break occurs the USDX 80.59 level would be expected to rise to the level of 80.73. Furthermore, if the USDX achieves in breaking the support level of 80.35, it is expected to drop to the level of 80.15. The MACD indicator is in neutral territory, so we must be very careful with the USDX.

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 80.35, take profit is at 80.15, and stop loss is at 80.54.