FX.co ★ USDX: Daily analysis for September 25, 2013

Daily chart: The USDX is trying to break the resistance at the 80.62 level, after it has made a strong bullish rebound days ago on the support at 80.11 level. If the USDX manages to break this resistance, it is expected to rise to the level of 81.10. On the other hand, if the USDX makes a bearish rebound at current levels, it would be expected to fall to the level of 80.11. The MACD indicator is entering oversold zone and showing extreme weakness in the overall bearish trend. However, remember that this could be just a corrective move in the bearish trend.

H4 chart: The USDX finally left the low range and this failed to break the resistance at the 80.50 level. Now, it is very likely that the USDX rises to the resistance at the 80.75 level and if you can break it, they expect it to rise to the level of 80.87. Furthermore, if the USDX achieves in breaking the support level of 80.50, it is expected to fall back to the level of 80.09. The MACD indicator remains in positive territory, which could indicate that the USDX could rise further to touch the 200-day moving average.

H1 chart: The USDX is breaking resistance at the 80.59 level and it is likely to rise to the resistance at the 80.73 level, very close to the 200-day moving average. On the other hand, it is also likely that the USDX conducts a bearish rebound at current levels and fall to support at the 80.35 level. For now, we recommend only to follow the general trend of the USDX, because this attempt to climb to the 200-day moving average and it is likely to conduct a bearish rebound there. The MACD indicator remains 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 80.59, take profit is at 80.35, and stop loss is at 80.82.