FX.co ★ Daily analysis of USDX for June 05, 2014

Daily chart: The USDX is about to break out the level of 80.62, so it is very likely that at the end of this week the USDX will consolidate above this resistance level. For now, the nearest target for the USDX is the resistance level of 81.50. The MACD indicator is entering overbought area.

H4 chart: The USDX continues moving in a low range, waiting for important news from the U.S. on Friday. In this chart, the USDX is trying to make a breakout on the resistance level of 80.60. If successful, it is expected to rise to the level of 81.25. The MACD indicator is in neutral territory.

H1 chart: The USDX has established again above the level of 80.59, so the next target for the USDX is the resistance level of 80.73. If the USDX does make a breakout at that level, it would be expected to rise to the level of 80.93, so the bullish outlook remains valid. The MACD indicator is in the overbought zone.

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 80.73, take profit is at 80.93, and stop loss is at 80.53.