FX.co ★ Daily analysis of USDX for November 03, 2014

The USDX has made a successful breakout on the resistance level of 86.20, which would help this instrument to reach the resistance level of 87.35 in the coming days, because the USDX has finished forming a higher high pattern in the daily chart. However, because this increase was very pronounced, the USDX could enter a consolidation phase. If the USDX manages to make a breakout on the resistance level of 87.35, the next target would be the 88.63 level.

Dailychart's resistance levels: 87.35 / 88.63

Dailychart's support levels: 86.20 / 85.18

On the H1 chart, the USDX had a strong bullish momentum above the support level of 86.17 during Friday. However, USDX is forming a higher high pattern below the resistance level of 87.00. If the USDX makes a successful breakout in that area, it's expected to rise to the level of 87.28. The MACD indicator is moving into negative territory.

H1 chart's resistance levels: 87.00 / 87.28

H1 chart's support levels: 86.72 / 86.40

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 87.00, take profit is at 87.28, and stop loss is at 86.72.