02.05.201408:11 Forex Analysis & Reviews: Daily analysis of USDX for May 02, 2014

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.

Daily chart: The USDX is forming a higher low pattern below the 79.80 level. If the USDX does make a breakout at the support level of 79.45, it's expected to fall to the level of 79.19. Howeve, it is expected to rise to the level of 79.85 if the USDX makes a bullish rebound at the current levels. The MACD indicator is in negative territory.

H4 chart: The USDX is trying to do a consolidation above the bearish trend line. However, the USDX is forming a higher low pattern, so it is very likely that the USDX will fall to the support level of 79.35 in the coming hours. The MACD indicator is in the oversold zone and into neutral territory.

H1 chart: The USDX has made a bullish rebound above the support level of 79.39. For now, the USDX is maintained within a low range below the resistance level of 79.64, so caution is advised when placing orders within this range. If the USDX does make a breakout at the resistance level, it's expected to rise to the level of 79.88. The MACD indicator is in positive territory.

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USD Index breaks with a bearish candlestick; the support level is at 79.39, take profit is at 79.13, and stop loss is at 79.64.

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.