FX.co ★ Daily analysis of USDX for January 10, 2014

Daily chart: The USDX found dynamic resistance in the 200 SMA, which could mean a change in the trend of the USDX, because the 200 SMA is a fairly strong level. However, the USDX is forming a bullish pattern, so we must be alert to any signs to place buy orders. On the other hand, if the USDX makes a bearish rebound at current levels, it will be expected to fall to the level of 80.62.The MACD indicator is in positive territory.

H4 chart: The USDX is trying to consolidate below the resistance level of 80.99, so it is likely to fall to the support level of 80.83. However, the USDX remains very bullish, as it stays above the 200 SMA. If the USDX manages to break the resistance level of 80.99, it is expected to rise to the level of 81.15. The MACD indicator is still in negative territory.

H1 chart: The USDX continues to fall below the resistance level of 81.09 and now the USDX is trying to make a breakout at the level of 80.93. If the USDX manages to break the support level of 80.73, it is expected to fall to the level of 80.59. On the other hand, if the USDX manages to break the resistance level of 81.09, it is expected to rise to the level of 81.40. The MACD indicator is entering extreme oversold zone.

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 80.73, take profit is at 80.59, and stop loss is at 80.87.В