FX.co ★ Daily analysis of USDX for August 07, 2014

Daily chart: The USDX continues trying to make a breakout on the resistance level of 81.50, because this level has slowed the upward trend that has been carrying this instrument in recent days. However, it is likely that the USDX will make a pullback at current levels and make a retracement to the 81.00 level . The MACD indicator is entering overbought area.

H4 chart: The USDX is trying to make a breakout at the level of 81.70, where the USDX has found strong resistance. By now, we should wait for the USDX to consolidate above the resistance level of 82.00 as the next target would be the 82.50 level. The MACD indicator is entering negative territory.

H1 chart: The USDX has made a pullback in the resistance level of 81.70 and now, this instrument is consolidating below the 81.58 level. If the USDX does make a breakout in the support level of 81.40, it would be expected to fall to the level of 81.19. On the other hand, if the USDX remains above the 200-day moving average, it would be expected to undertake a rebound and go up to the level of 81.73.

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 81.58, take profit is at 81.73, and stop loss is at 81.43.