FX.co ★ Daily analysis of USDX for April 07, 2014

Daily chart: The USDX has found resistance at the 80.62 level and now the USDX is forming a bullish pattern. If the USDX manages to consolidate above this level, it would be expected to rise to the level of 81.00, which is located above the 200 SMA. On the other hand, if the USDX makes a bearish rebound at current levels, it would be expected to fall to the level of 80.11. The MACD indicator is in positive territory.

H4 chart: The USDX is keeping moving in a low range above the support level of 80.35. If the USDX does make a breakout on the resistance level of 80.58, it's expected to rise to the level of 81.32. Furthermore, if the USDX consolidation is accomplished below support level of 80.35, it's expected to fall to the level of 80.15. The MACD indicator is in the overbought zone.

H1 chart: The USDX has made a bearish rebound in the resistance level of 80.59. If the USDX does make a breakout in the support level of 80.35, it's expected to fall to the level of 80.15, which would jeopardize the current bullish trend as the USDX would approach the 200 SMA. The MACD indicator is in negative territory.

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 80.59, take profit is at 80.73, and stop loss is at 80.44.