FX.co ★ USDX: Daily analysis for October 17, 2013

Daily chart: The USDX had no significant changes in the last hours. It is still within the range between 80.62 and 80.11 levels. Now, remember that the USDX is forming a higher low pattern above support at the 80.11 level. If the USDX manages to break that level, it would be expected to extend the bearish trend with dips to the 79.19 level. For now, we recommend not placing orders based on this chart, because the trend is not clear. The MACD indicator remains in positive territory.

H4 chart: The USDX could not overcome dynamic resistance offered by the 200-day moving average near the 80.15 level. The USDX is still forming a lower high pattern below the level of 80.50 and if the USDX breaks through that resistance level, it would be expected to go up again to the level of 80.65. On the other hand, it is expected to fall to the level of 80.09 in the coming hours. The MACD indicator is entering negative territory.

H1 chart: The USDX found strong resistance at the 80.73 level. Now, the USDX is trying to find support at the 80.35 level, where the 200-day moving average lies. If the USDX manages to break that level, it is expected to fall to the level of 80.15, which would give strength to the current bearish trend. On the other hand, if the USDX makes a bullish rebound at current levels, it would be expected to rise to the level of 80.59. The MACD indicator remains in negative territory.

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