01.10.201401:58 Forex Analysis & Reviews: Daily analysis of USDX for October 01, 2014

Long-term review

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On the daily chart, you can see that the USDX has finally hit the resistance level of 86.20, because the USDX has been very strong in the bullish trend due to the strong impulses that the instrument has been getting after the publication of several economic indicators in the United States. The USDX could begin to form a higher high pattern for a breakout at the resistance level of 86.20 and advance to the next target at the 87.35 level. However, the USDX could begin to enter a phase of consolidation.

Daily chart's resistance levels: 86.20 – 87.35

Daily chart's support levels: 85.18 – 84.29

On the H1 chart, we can see a rather peculiar situation for the USDX, because this instrument found support at the same level for several consecutive hours in yesterday's session. This level is located at 85.62, where the USDX performed a rebound thanks to the force exerted by the bulls. The USDX is still holding above the 200 SMA.

H1 chart's resistance levels: 85.95 – 86.17

H1 chart's support levels: 85.73 – 85.49

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 85.95 take profit is at 86.17, and stop loss is at 85.73.

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