FX.co ★ USDX: Daily analysis for October 16, 2013

Daily chart: The USDX has been bullish this week, due to the strong momentum that the USD pairs have had. If the USDX manages to break the resistance at the 80.62 level, it would be expected to rise to the level of 81.50. On the other hand, we must bear in mind that the USDX is moving within a range of indecision in the trend, so we must be very cautious. If USDX achieves in breaking the support at the 80.11 level, it would be expected to drop to the level of 79.19. The MACD indicator remains in positive territory.

H4 chart: The USDX performed a bullish rebound at the bearish trendline, near the level of 80.15, and now the USDX is forming a lower high pattern at the resistance below the level of 80.65. If the USDX manages to break that level, it is expected to rise to the level of 80.75, where the 200-day moving average lies. Furthermore, if the USDX achieves in breaking the support level at 80.50, it is expected to drop to the level of 80.09. The MACD indicator remains in positive territory.

H1 chart: The USDX made a bullish rebound at the 200 SMA and quickly went up to resistance at the 80.59 level and found a break on its bullish trend and now, the USDX is trying to break that level again. If successful, it is expected to rise to the level of 80.72. Moreover, it is likely that the USDX performs a fall at the level of support at 80.35 near the SMA 200. The MACD indicator is entering neutral territory.

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USDX Index breaks a bullish candlestick; the resistance level is at 80.59, take profit is at 80.73, and stop loss is at 80.45.