FX.co ★ Daily analysis of USDX for July 11, 2014

Daily chart: The USDX is finding resistance at the 80.11 level, where the USDX could be forming a bearish pattern, as it remains below the 200 SMA and the resistance level of 80.11 is quite strong. For now, we recommend waiting for clearer patterns. The MACD indicator is in the positive territory.

H4 chart: The USDX is trying to form a bullish pattern above the 80.09 level, so the next target path remains bullish moving average 200 However, if the USDX manages to make a breakout at the level of 80.09, it is expected to fall to the level of 79.93. The MACD indicator is in the neutral territory.

H1 chart: The USDX is finding resistance at the 80.15 level, where the 200-day moving average is located. So, the USDX is likely to fall to the support level of 79.88. If the USDX does make a breakout at that level being the next target, it would be the support level of 79.64. 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 a bearish support level at 79.88; take profit is at 79.64, and stop loss is at 80.12.