FX.co ★ Daily analysis of USDX for February 04, 2014

Daily chart: The USDX has temporarily found resistance at the level of 81.33. However, the USDX remains above the 200-day moving average. Thus, the USDX is likely to have bullish momentum and climb to the resistance level of 81.50. Furthermore, any consolidation below the 200 SMA could be a change in the trend in the medium term. The MACD indicator is still in positive territory.

H4 chart: The USDX has consolidated above the support level of 80.99. Remember that the USDX found resistance near the level of 81.29, where it formed a fractal. If the USDX manages to break the support level of 80.99, it's expected to fall to the level of 80.83. For now, our bullish outlook is still valid since the USDX remains above the 200 SMA. The MACD indicator is in negative territory.

H1 chart: The USDX is approaching the 200 day moving average and is forming a bearish pattern. However, the USDX could find dynamic support at this level, as the point of control could give it a bullish momentum. 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 buy (long) orders only if the USD Index breaks with a bullish candlestick; the resistance level is at 81.09, take profit is at 81.40, and stop loss is at 80.78.