07.05.201408:54 Forex Analysis & Reviews: Daily analysis of USDX for May 07, 2014

Daily chart: The USDX continues to weaken and strengthen the current bearish bias since the USDX is conducting a breakout at the support level of 79.19. If successful, it is expected to fall to the level of 78.12. Now, we recommend caution when placing sell orders, because the USDX could perform a bullish rebound at the support level. The MACD indicator is in negative territory.

H4 chart: The USDX is consolidating below the resistance level of 79.27. If the USDX does make a breakout at the support level of 79.07, it's expected to fall to the bearish trend line at the 77.50 level in the long term, although the USDX could be forming bearish patterns on the way. The MACD indicator is in negative territory.

H1 chart: The USDX has made a successful breakout level at 79.39 and now the USDX is forming a higher low pattern. If the USDX does make a breakout at the support level of 79.13, it's expected to fall to the level of 78.92. On the other hand, if the USDX makes a bullish rebound at the current levels, it is expected to rise to the level of 79.39. 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 79.13, take profit is at 78.92, and stop loss is at 79.34.