FX.co ★ USDX: Daily analysis for September 24, 2013

Daily chart: The USDX is trying to resume the bullish road, having managed to consolidate below resistance at the 80.62 level. The USDX is trying to break that level and if it succeeds, it is expected to rise to the level of 81.10. On the other hand, we must remember that the current movements in the USDX is the formation of a higher low pattern. If the USDX achieves in breaking the support level at 80.11, it would be expected to further prolonging the current bearish trend. The MACD indicator remains in negative territory.

H4 chart: The USDX is near the resistance at the 80.50 level, which is trying to break and if it succeeds, it is expected to rise to the level of 80.75. On the other hand, if the USDX makes a bearish rebound at current levels it would be expected to fall to support at the 80.09 level. The USDX still remains below the 200-day moving average and is still forming a higher low pattern, which strengthens our bearish outlook for the USDX. The MACD indicator remains in positive territory.

H1 chart: The USDX tried to break the support at the 80.35 level and failed. Now the USDX remains below the resistance level at 80.59 and if breaks it, it would be expected to rise to the level of 80.73, which would mean an approximation to the SMA 200. Furthermore, if the USDX achieves in breaking the support level of 80.35, it is expected to drop to the level of 80.15. We must be alert to the development of the USDX intraday trend, because the MACD indicator continues to be in neutral territory, reflecting indecision in the market.

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.