FX.co ★ Daily analysis of USDX for January 15, 2014

Daily chart: The USDX has been consolidating over the level of 80.62. This consolidation has been achieved thanks to the bullish force that presented the USDX in the past due to fundamental factors. However, it is very likely that the USDX find dynamic resistance in the 200 SMA. On the other hand, if the USDX manages to consolidate above the 200 SMA, it's expected to rise to the level of 81.50. The MACD indicator is entering neutral territory.

H4 chart: The USDX has made a strong bullish rebound on the 200 SMA and now the USDX is trying to make a breakout at the level of 80.83. If the USDX manages to break that level, it is expected to rise to the level of 80.99. On the other hand, if the USDX makes a bearish rebound at current levels, would be expected to fall to the level of 80.55. The MACD indicator is in positive territory.

H1 chart: The USDX is consolidating above the 200 SMA and the level of 80.72. Now, the USDX is trying to form a bullish pattern, but we must consider that the USDX gained thanks to the economic indicators that have been published in recent days, but on a technical level, it is expected to fall again below the 200 SMA . However, this hypothesis is void if the USDX manages to break the resistance level of 80.93. The MACD indicator is entering extremely overbought 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