FX.co ★ USDX: daily analysis for November 22, 2013

Daily chart: The USDX made a bearish rebound from the 200 SMA and this movement is important because there the USDX formed a bearish candlestick pattern, which could indicate future declines in the USDX. If the USDX manages to break the support level of 80.62, it is expected to fall to the level of 80.11. On the other hand, if the USDX manages to break the resistance at the 81.50 level, it is expected to rise to the level of 82.51. The MACD indicator is still in neutral territory.

H4 chart: The USDX continues to consolidate above support at the 80.94 level. Now, it is likely that the USDX will start forming bullish patterns to climb up to the resistance level of 81.48. Furthermore, if the USDX achieves in breaking the support level of 80.94, it is expected to drop to the level of 80.87. The MACD indicator is entering extremely overbought zone, so we must be careful with the current trend of the USDX.

H1 chart: The USDX managed to rise above the resistance level of 81.09, but during yesterday's session, the USDX found resistance at the 81.25 level and again this fell below the 81.09 level. Now, the USDX is trying to break that level again. If successful, it is expected to rise up to the level of 81.40. On the other hand, if the USDX manages to break the support level of 80.93, it is expected to fall to the level of 80.73, below the 200 SMA. The MACD indicator is entering overbought zone and in neutral territory.

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USDX breaks a bullish candlestick; the resistance level is at 81.09, take profit is at 81.40, and stop loss is at 80.78.