FX.co ★ Daily analysis of USDX for February 28, 2014

Daily chart: The USDX found strong resistance near the 80.55 level and now the USDX is consolidating below the level of 80.35. However, it could be forming a bullish pattern to continue rising as the USDX has been in a bullish bias in recent days, so the next target would be the resistance level of 80.62. The MACD indicator is entering positive territory.

H4 chart: The USDX made a bearish rebound at the 200-day moving average, so it is very likely for the USDX to fall to the support level of 80.15. If the USDX does make a breakout at that level, it would be expected to fall to the level of 80.09. On the other hand, if the USDX consolidates above the 200-day moving average, it's expected to rise to the level of 81.00. The MACD indicator is in the overbought zone and into negative territory.

H1 chart: The USDX has found support at the 200-day moving average, so there are still chances that the USDX will make a bullish rebound above that level. However, if the USDX does make a breakout in the support level of 80.15, it's expected to fall to the level of 79.88. On the other hand, if the USDX manages to consolidate above the 80.35 level, it is expected to rise to the level of 80.59. 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 80.15, take profit is at 79.88, and stop loss is at 80.42.