FX.co ★ USDX: Daily analysis for October 07, 2013

Daily chart: The USDX rose back up to the resistance level at 80.11. Now, it is very likely that the USDX would conduct a bearish rebound at this level and try to fall to the support level at 79.19. This could be a bearish corrective movement in the USDX's current trend, so it is normal. However, if the USDX manages to break this resistance level, it is expected to rise to the level of 80.62 . For now, we recommend following the trend in the USDX. The MACD indicator is entering extreme oversold zone and in neutral territory.

H4 chart: The USDX is trying to break the resistance at the 80.08 level. As in the daily chart, the USDX could make a bearish rebound at current levels and could fall to the level of 79.55, at which one bullish trendline is placed. On the other hand, if the USDX manages to break the resistance at the 80.08 level, it is expected to rise to the level of 80.20, at which one bearish trendline is situated. The MACD indicator is in positive territory and still has not entered extremely overbought area.

H1 chart: The USDX performed a bearish rebound at 200 SMA, near the resistance level at 80.15. Now, the USDX is likely to fall to the support level of 79.88. If the USDX manages to break that level, it is expected to fall to the level of 79.64. On the other hand, if the USDX manages to break the resistance at the 80.15 level, it would be expected to rise to the level of 80.35. The MACD indicator is in extreme overbought zone and 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 79.88, take profit is at 79.64, and stop loss is at 80.12