FX.co ★ USDX: daily analysis for October 29, 2013

Daily chart: The USDX is conducting a bullish rebound at the support level of 79.19. This could be the formation of a higher low pattern. If the USDX manages to break that level, it is expected to fall to the level of 78.12. On the other hand, if the USDX fails to make a full bullish rebound at current levels, it would be expected to go up to the resistance at the 80.11 level. The MACD indicator is entering neutral territory, so we must be cautious.

H4 chart: The USDX is seeking to strengthen the bullish trend, and it is very likely that it rises to the resistance at the 79.63 level. If the USDX manages to break that level, it is expected to rise to the level of 80.06. Furthermore, there is still the possibility that USDX drops to the level of 79.00, where a bearish trend line is placed. The MACD indicator remains in positive territory and the USDX remains below the 200-day moving average.

H1 chart: The USDX is trying to break the resistance at the 79.39 level. If the USDX manages to break that level, it is expected to rise to the level of 79.64. On the other hand, it is very likely that the USDX conduct a bearish rebound at current levels and fall back to support at the 79.13 level. However, the USDX could continue the bearish trend generally, because this would find dynamic resistance of the moving average of 200. The MACD indicator remains in neutral territory.

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.