FX.co ★ USDX: daily analysis for October 23, 2013

Daily chart: The USDX continues to fall after it completed to form a higher low pattern and the USDX fell through the support level of 79.19. If the USDX manages to break that level, it is expected to fall to the level of 78.12. On the other hand, it is very likely that the USDX conduct a bullish rebound at current levels and up to the level of 79.80. The MACD indicator remains in negative territory and the USDX remains below the 200-day moving average.

H4 chart: The USDX is forming a higher low pattern below a bearish trendline near the level of 79.30. Below current levels, the USDX has formed a fractal, which could lead to a change in trend in the short term. However, if the USDX manages to break the support at the 79.00 level, it is expected to fall to the 78.85 level, where there is another bearish trendline. The MACD indicator remains in negative territory.

H1 chart: The USDX is forming a bearish pattern below the resistance level of 79.39. If the USDX achieves in breaking the support at the 79.13 level, it would be expected to drop to the level of 78.92. On the other hand, if the USDX manages to break the resistance at the 79.39 level, it would be expected to rise to the level of 79.64. For now, the bearish trend is very much alive. The MACD indicator is moving into positive territory and extreme oversold zone.

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 79.13, take profit is at 78.92, and stop loss is at 79.39.