FX.co ★ Daily analysis of USDX for December 19, 2013

Daily chart: USDX had a fairly volatile session, thanks to announcements from the U.S. Federal Reserve in respect of the purchases of bonds. USDX made a strong bullish rebound at the support level of 80.11. Now it is trying to break the resistance level of 80.62. If successful, it is expected to go up to the 200-day moving average near the 81.05 level. On the other hand, if USDX makes a bearish rebound at the current levels, it will be expected to fall back to the level of 80.11. The MACD indicator is in extremely oversold zone and entering positive territory.

H4 chart: USDX is trying to consolidate above the 200-day moving average after it has made a bullish rebound above the support level of 80.09. If USDX manages to break the resistance level of 80.65, it is expected to rise to the level of 80.75. Furthermore, if USDX breaks the support level of 80.40, it is expected to fall to the level of 80.09. The MACD indicator is in positive territory.

H1 chart: USDX is forming a lower high pattern above the support level of 80.35. The USDX is very bullish, as it is consolidating above the 200-day moving average, but it is very likely that USDX to fall back. If USDX manages to break the support level of 80.35, it is expected to fall to the level of 80.15. On the other hand, if USDX manages to break the resistance level of 80.59, it is expected to rise to the level of 80.73. The MACD indicator is entering extremely overbought zone.

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if USDX breaks a bullish candlestick; the resistance level is at 80.59, take profit is at 80.73, and stop loss is at 80.45.