FX.co ★ Daily analysis of USDX for July 21, 2014

Daily chart: The USDX is trying to make a breakout on the resistance level of 80.62, where the USDX could perform a bullish consolidation, although this is likely to remain strong resistance level. On the other hand, if the USDX makes a pullback at current levels, the next target would be the support level of 80.11. The MACD indicator is in positive territory.

H4 chart: The USDX continues to find resistance near to the 80.65 level, so the USDX could fall back to the support level of 80.34. However, a breakout of this resistance level, could lead to the USDX to rise to the level of 81.02 in the medium term. The MACD indicator remains in negative territory.

H1 chart: The USDX remains below the resistance level of 80.59, where the USDX is trying to form a bullish pattern. If the USDX does make a breakout at that level, it would be expected to rise to the level of 80.73. On the other hand, if the USDX makes a pullback at the current levels, it's expected to drop to the 200 SMA. MACD 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 support level is at 80.59, take profit is at 80.73, and stop loss is at 80.45.