FX.co ★ Daily analysis of USDX for April 29, 2014

Daily chart: The USDX continues to extend its bearish bias below the resistance level of 80.11 and the 200 SMA. For now, the USDX is making very slow movements that could last for the rest of the week, which aims to the support level of 79.19. If the USDX does make a breakout at that level, it would be expected to fall to the level of 78.12. The MACD indicator is entering negative territory.

H4 chart: The USDX has met resistance in the bearish trend line that has formed around current levels. It is very likely that the USDX to fall to the support level of 79.33, where another trend line is located. However, caution when placing sell orders at current levels is recommended. The MACD indicator is still in negative territory.

H1 chart: The USDX has consolidated again below the 200-day moving average after making one bearish rebound at the 200-day moving average. If the USDX does make a breakout at the support level of 79.55, it's expected to fall to the 79.39 level. The MACD indicator is in the overbought zone.

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 79.64, take profit is at 79.39, and stop loss is at 79.90.