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

The Union State Address at the United States by their president, Barack Obama, will be an event that will help to give a more evident “north” to the USDX, because at the moment, this instrument is trying to perform a breakout at the resistance level of 93.02, as we can see it on the daily chart after a development of one bullish pattern. The next target would be the 94.18 level.

During the last American's session, the USDX got to stay above the support level of 92.88 with a higher high pattern formation. The USDX is still respecting the bullish trend line next to the support level of 92.88. Currently, the short-term bias for the USDX would be the level of 93.22, where this instrument could find strong resistance. We'll be waiting for a breakout at that zone.

Daily chart's resistance levels: 93.02 / 94.18

Dailychart's support levels: 91.88 / 90.28

H1 chart's resistance levels: 93.22 / 93.65

H1 chart's support levels: 92.88 / 92.55

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 93.22, take profit is at 93.65, and stop loss is at 92.79.