FX.co ★ USDX: daily analysis for October 28, 2013

Daily chart: The USDX consolidated with a bearish trend in this chart, but the movements are slower every day, and it could be an indication of a turnaround within the coming days. However, the USDX could be forming a higher low pattern above the 79.19 level. If the USDX manages to break that level, it is expected to fall to the level of 78.12. However, we should be alert to any bullish rebound. The MACD indicator remains in negative territory.

H4 chart: The USDX found support at the bearish trend line, and it is very likely to conduct a bullish rebound at the current levels and up to resistance level of 79.63 , but the USDX is currently forming a bearish pattern. If the USDX achieves in breaking the support at the 78.70 level, it would be expected to drop to the level of 78.25. The MACD indicator remains in positive territory.

H1 chart: The USDX has come back in the range between 79.39 and 79.13, after having made a false breakout in the 79.13 support level. There is still the possibility that it will break the resistance at the 79.39 level and look up to the resistance at the 79.64 level, where the 200-day moving average is situated, but the bearish trend is still alive. The MACD indicator remains in extreme overbought zone and entering negative territory.

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USDX breaks a bearish candlestick; the support level is at 79.13, take profit is at 78.92, and stop loss is at 79.39.