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

Daily chart: The USDX is trying to form a lower high pattern above the 81.00 level, while the USDX is trying to stay strong in the current bullish trend. However, the USDX could fall to the support level of 80.62 as part of the corrective momevements, but for now, the bullish bias is strong.

H4 chart: The USDX has moved on in the last hour range below the resistance level of 81.02. If the USDX does make a breakout at that level, the next target would be the bullish trend line which is located at the level of 81.45. On the other hand, if the USDX makes a pullback at current levels, the next target would be the support level of 80.60.

H1 chart: The USDX has not made significant changes in the last few hours, so the USDX still remains strong in the bullish trend. The next target is the road bullish resistance level of 81.19. On the other hand, if the USDX does make a breakout at the support level of 80.93, it's expected to fall to the level of 80.73. The MACD indicator is entering neutral 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 resistance level is at 81.19, take profit is at 81.40, and stop loss is at 80.98.