04.12.201313:24 Forex Analysis & Reviews: #USDX analysis for December 4, 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.

Nothing much has changed in the Dollar index. Price action remains sideways. Prices did not manage to reach 81 yesterday and pulled back towards support at 80.50. The longer term trend remains neutral. The decline from 81.50 is corrective and not impulsive and that is why we wait to receive a valid reversal signal to enter a long position.

The triangle remains valid as prices continue to trade within it. The MA has a neutral slope and the price action as shown above remains overlapping. Short-term resistance is found at 81 and short term support at 80.40-50. Breaking either level will start a new trend. We buy if we break above 81 or near 80.50 with 80.35 stop. We sell if 80.40 is broken or near 81 with 81.20 stop reverse.

The daily chart continues to confirm that the trend is sideways. The 2 MA are converging and we believe soon we will get a buy or sell signal. For now we remain neutral.

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.