28.08.201311:26 Forex Analysis & Reviews: USDX: Daily analysis for August 28, 2013

Daily chart: The USDX made a strong bearish rebound at the level of 81.50. The resistance level is very important in this chart. It is very likely that the USDX will fall to support at the 80.62 level due to the weakness of the USDX in the recent days. However, we do not rule out the possibility of a break of the 81.50 resistance level and if it succeeds, it is expected to rise to the level of 81.75. The MACD indicator remains in positive territory, but showing a lot of weakness of the bullish trend.

H4 chart: The USDX is forming a higher low pattern below the support level of 81.33 and below but close the bearish trendline. It is likely that the USDX will fall to the support level of 80.94. However, there is much support for keeping back future falls in the USDX. On the other hand, if the USDX manages to break the resistance level of 81.33, it will be expected to rise to the level of 81.72, near the 200 SMA. The MACD indicator is in negative territory, which could support our bearish outlook for the USDX.

H1 chart: The USDX is trying to consolidate below the Point of Control (POC) near the 81.22 level. Because of this, the USDX is forming a higher low pattern, having fallen below support at the 81.40 level and the 200-day moving average. If the USDX achieves in breaking the support level of  81.09, it will be expected to drop to the level of 80.93. On the other hand, if the USDX consolidates a bullish trend, it is expected to rise to the level of 81.40. The MACD indicator is extremely oversold and entering positive territory.

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USD Index breaks a bearish candlestick; the support level is at 81.09, take profit is at 80.92, and stop loss is at 81.25.