FX.co ★ USDX: Daily analysis for October 08, 2013

Daily chart: The USDX failed to break the resistance at the 80.11 level and at that level, the USDX made a bearish rebound, so it is very likely that the bearish trend will continue to strengthen in this chart. However, it is expected to fall to extend into support zone at 79.19 level. On the other hand, if the USDX resistance breaks at 80.11 level, it would be expected to rise to the level of 80.62. The MACD indicator is entering extreme oversold zone and in neutral territory.

H4 chart: The USDX is still trying to break the resistance at the 80.09 level, but have not got it, because that level is too strong in this chart. However, if the USDX breaks the resistance, it would be expected to rise to the level of 80.20. On the other hand, it is likely that the USDX will conduct a bearish rebound and fall to the level of 79.55, where a bearish trendline is. The MACD indicator is entering extremely overbought zone and in neutral territory.

H1 chart: During yesterday's session, the USDX made a bullish rebound on the support at the 79.88 level and it is very likely that this rises to the resistance at the 80.15 level, where is located the 200 day moving average. On the other hand, is likely that the USDX will break that support level at 79.88 and drop to the level of 79.64. The USDX remains below the 200-day moving average, so our bearish outlook is still alive and the MACD indicator is moving into positive territory.

Trading recommendations for today: Based in the H1 chart, place buy (long) orders only if the USDX Index breaks a bullish candlestick; the resistance level is at 80.15, take profit is at 80.35, and stop loss is at 79.96.