FX.co ★ Daily analysis of USDX for February 19, 2014

Daily chart: USDX is consolidating below the resistance level of 80.11 with a higher low pattern, so USDX is likely to continue falling below this level, reaching the support level of 79.19 in the long term. However, USDX formed a fractal near the level of 79.85, so USDX may perform a bullish rebound and achieve again consolidation above the level of 80.11. The MACD indicator is in negative territory.

H4 chart: The USDX has found support near the 79.95 level. However, the weakness in the U.S. dollar remains as the USDX remains below the 200 SMA. However, if the USDX does make a breakout at the support level of 79.76, it's expected to fall to the level of 79.69. On the other hand, if the USDX manages to break the bullish trend line near the 80.25 level, it is expected to rise to the level of 80.44. The MACD indicator is in neutral territory.

H1 chart: The USDX is looking for support at the point of control near the 80.00 level, so it is likely to fall to the level of 79.88. If the USDX does make a breakout at the support level, it is expected to fall to the level of 79.64. On the other hand, if the USDX breaks the resistance level of 80.15, it's expected to rise to the level of 80.35. The MACD indicator is in negative territory.

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USD Index breaks with a bearish candlestick; the support level is at 79.88, take profit is at 79.64, and stop loss is at 80.11.