Daily analysis of USDX for January 17, 2014

Daily chart: The USDX is to finalize the formation of the lower high pattern below the 200 SMA. The USDX intends to consolidate its bullish trend, but pressure from the bears increasingly manifested at current levels, so it is very likely for the bearish trend to rebound and USDX to fall back to the support level of 80.62. The MACD indicator is still in positive territory.

H4 chart: The USDX is consolidating above the support level of 80.99. If the USDX manages to break the resistance level of 81.19, it is expected to rise to the level of 81.29 and then to the level of 81.48. Furthermore, if the USDX achieves in break again the support level of 80.99, it’s expected to fall to the level of 80.83. The MACD indicator is still in neutral territory.

H1 chart: Near the resistance level of 81.09, there is a very strong point of control, since this level has prevented the USDX continues to rise, so it is very likely to make a bearish rebound and drops to level of 80.93. If the USDX achieves in break that support level, it’s expected to fall to the level of 80.73, where the 200 day moving average is located. The MACD indicator is still in positive territory.

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USDX Index breaks a bearish candlestick; the support level is at 80.93, take profit is at 80.73, and stop loss is at 81.14. The material has been provided by InstaForex Company – www.instaforex.com

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