FX.co ★ Daily analysis of USDX for November 06, 2014

The USDX continues forming a bullish pattern below the resistance level of 87.35. However, the USDX could conduct a retracement to the psychological level of 87.00, although this instrument is still holding strong in the current bullish trend. The MACD indicator remains in positive territory, which would support our current bullish trend.

Dailychart's resistance levels: 87.35 / 88.63

Dailychart's support levels: 86.20 / 85.18

On the H1 chart, the USDX has consolidated above the support level of 87.28. Now, the USDX has encountered strong resistance at the 87.58 level. If successful, it is expected to rise to the level of 87.86 which would be a strong bullish consolidation in the short term. However, the USDX is showing weakness in the current trend, so it would not be surprising that the USDX to fall to 87.00 level.

H1 chart's resistance levels: 87.58 / 87.86

H1 chart's support levels: 87.28 / 87.00

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 87.58, take profit is at 87.86, and stop loss is at 87.28.