FX.co ★ USDX: Daily analysis for November 07, 2013

Daily chart: The USDX continues forming a lower high pattern below the resistance level of 80.62, but the likelihood that the USDX falls to the support level of 80.11 is high. If the USDX manages to break this support level, it would be expected to fall to the level of 79.19, which would prolong the overall bearish trend of the USDX. On the other hand, if the USDX manages to consolidate above the 200 SMA, the bullish outlook would be strengthened in this chart. The MACD indicator is entering extremely overbought area.

H4 chart: The USDX is trying to form a bearish pattern below the 80.50 level and if this does form, it is expected to fall to the level of 80.20, which houses the 200-day moving average. On the other hand, if the USDX breaks the resistance level at 80.50, it would be expected to rise to the level of 80.65. The MACD indicator remains in negative territory.

H1 chart: The USDX is able to consolidate below resistance at the 80.59 level and now, the USDX is trying to get to the 200-day moving average, but to do so, it needs to break the support at the 80.35 level. If successful, it is expected to fall to the level of 80.15. On the other hand, if the USDX breaks the resistance level at 80.59, it would be expected to rise to the level of 80.73. 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 80.35, take profit is at 80.15, and stop loss is at 80.55.