05.05.201401:52 Forex Analysis & Reviews: Daily analysis of USDX for May 05, 2014

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Daily chart: The USDX continues to bearish movements below the 79.70 level, so it is very likely that the USDX will fall to the support level of 79.19 this week. However, keep in mind that this support level is quite strong, so the USDX could perform a rebound at that level. The MACD indicator is in negative territory.

H4 chart: The USDX has made a bearish rebound in 200 SMA and now the USDX is trying to make a consolidation below the bearish trend line, so it is likely that the USDX will fall to the support level of 79.33. If the USDX does make a breakout at the level of 79.20, it's expected to fall to a support level of 78.95. The MACD indicator is in neutral territory.

H1 chart: The USDX remains below the 200-day moving average, so the USDX has formed a fractal above that level. If the USDX does make a breakout at the support level of 79.39, it's expected to fall to the level of 79.13. For now, the USDX remains strong in the bearish bias. The MACD indicator is in negative 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.

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