28.01.201401:53 Forex Analysis & Reviews: Daily analysis of USDX for January 28, 2014

Daily chart: The USDX is forming a higher low pattern below the level of 80.62, so it is a clear confirmation that the USDX is trying to continue falling below the 200 SMA. However, the USDX had already formed a fractal near the support level of 80.11, so the USDX would probably try to climb back up the 200 SMA. The MACD indicator is still in negative territory.

H4 chart: At current levels, the USDX has formed a triangle pattern, so it is expected that the bearish trend will continue over the USDX. On the other hand, if the USDX manages to break the resistance level of 80.52 (bearish trend line), it's expected to go up to the 200-day moving average near the level of 80.70. Meanwhile, the USDX could break the support level of 80.40, to fall to the level of 80.25. The MACD indicator is in extremely oversold zone.

H1 chart: The USDX has not had significant changes, so that the levels of 80.59 and 80.35 remain as strong support and resistance levels. It should be noted that the control point of this week is forming near the resistance level of 80.59. If the USDX manages to break that level, it is expected to rise to the level of 80.73. The MACD indicator is entering neutral territory and in extremely overbought zone.

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USDX Index breaks with a bearish candlestick; the support level is at 80.35, take profit is at 80.15, and stop loss is at 80.55.