FX.co ★ USDX: daily analysis for November 04, 2013

Daily chart: The USDX is very strong in the current bullish trend and now, the USDX is trying to break the strong resistance at the 80.62 level. If successful, it is expected to rise to the level of 81.50, very close to the 200-day moving average. On the other hand, if the USDX makes a bearish rebound at current levels, it would be expected to fall to the level of 80.11. The MACD indicator remains in positive territory, which keeps alive our bullish outlook on the USDX.

H4 chart: The USDX is consolidating above the 200-day moving average, with the formation of a lower high pattern above the support at 80.65 level. If the USDX manages to break the resistance at the 80.75 level, it would be expected to rise to the level of 80.87. Furthermore, if the USDX achieves in breaking the level of 80.65, it is expected to drop to the level of 80.50. The MACD indicator remains in positive territory and entering extremely overbought area.

H1 chart: The USDX is trying to break the resistance at the 80.73 level. If successful, it is expected to rise to the level of 80.93. Moreover, it is likely that the USDX will begin performing corrective movements, because the trend has been very bullish lateralized in this chart, so overbought should soften slightly to continue rising. However, if the USDX breaks the support level of 80.59, it is expected to drop to the level of 80.35.

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 80.73, take profit is at 80.93, and stop loss is at 80.53.