FX.co ★ USDX: daily analysis for November 08, 2013

Daily chart: The USDX manages to break the resistance at the 80.62 level with a lower high pattern. The USDX tried to rise to the resistance level at 81.50, but this fell rapidly to the level of 80.83. If the USDX breaks the support level of 80.62, it is expected to drop to the level of 80.11. On the other hand, it is very likely that the USDX has an upward rebound to resistance at 81.50 level. MACD indicator remains in positive territory.

H4 chart: The USDX failed to consolidate above the resistance at the 80.94 level; close to that level, the USDX formed a fractal. Now, the USDX is finding support at the 80.87 level, close to many other levels, which are also strong support. If the USDX manages to break the resistance at 80.94 level, it would be expected to rise to the level of 81.55. The MACD indicator remains in positive territory.

H1 chart: The USDX found strong resistance at 81.40 and there, this was a sharp drop to the support at the 80.73 level. Now, it is not clear what kind of pattern is currently forming the USDX. However, if the USDX manages to break the resistance level of 80.93, it would be expected to rise to the level of 81.09. Furthermore, if the USDX achieves in breaking the support level of 80.83, it is expected to drop to the level of 80.59. The MACD indicator remains in negative territory.

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 80.93, take profit is at 81.09, and stop loss is at 80.78.