FX.co ★ Daily analysis of USDX for May 06, 2014

Daily chart: The USDX has not had major changes in this chart, as the USDX continues to fall below the 200-day moving average, so the bearish bias remains strong. For now, the nearest target is the support level of 79.19. However, if the USDX makes a bearish rebound at the current levels, it is expected to rise to the resistance level of 80.11. The MACD indicator is in negative territory.

H4 chart: The USDX had a bullish momentum above the bearish trend line that is close to the level of 79.50, but the USDX is trying to make a breakout at the support level of 79.33. If successful, it is expected to fall to the level of 79.27. On the other hand, if the USDX makes a bullish rebound at the current levels, it is expected to rise to the level of 79.75. The MACD indicator is in neutral territory.

H1 chart: The USDX remains below the point of control that is near the 200 SMA. However, if the USDX does make a breakout at the support level of 79.39, it's expected to fall to the level of 79.13 which would be a strong bearish consolidation. 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 79.39, take profit is at 79.13, and stop loss is at 79.64.