14.11.201313:07 Forex Analysis & Reviews: #USDX analysis for November 14, 2013

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Althought the Dollar index has broken the upward sloping trend line that started at 79, prices have found support at the previous resistance level at the 80.60-75 area. The support area is shown with green colours in the chart. Resistance is still the 81.50 area where a triple top was formed.

The decline to 81.50 is in three waves for now and we believe this is a corrective pull back. If prices break above the intermediate high at 81.30, we will have confirmation that the up trend is resuming and that the correction is over. Breaking below the green support area is possible if buyers are not able to break above 81.30. We are bullish in the longer term and as far as the short term is concerned, we want to enter long if prices break above 81.30 and add to long position if 81.50 is broken.

The daily chart is starting to form a pattern of higher highs and higher lows, something that will support our bullish view. Our first target now is the 82-83 area to be reached as long as we trade above 80.50. In the longer term stop for bulls is 79. The longer-term bears should not have a position as the trend is upward.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.