12.05.201402:31 Forex Analysis & Reviews: Daily analysis of USDX for May 12, 2014

Daily chart: The USDX has made a bullish consolidation above the level of 79.50, so that the next target for the USDX is the resistance level of 80.11. However, the bullish momentum could weaken when the USDX touches the level of 80.11. On the other hand, if the USDX does make a bearish rebound at that level, we would be expected to fall to the level of 79.19. The MACD indicator is in positive territory.

H4 chart: The USDX remains above the 200-day moving average which is expected to begin forming a bullish pattern above that level. If the USDX does make a breakout at the resistance level of 79.93, it's expected to rise to the level of 80.09. On the other hand, USDX is likely to move in a low range during the first days of the week. The MACD indicator is in positive territory.

H1 chart: The USDX has found resistance at the 79.88 level, where the USDX has formed a fractal, which could weaken the bullish bias for today's session. If this happens, it is expected that the USDX will fall to the support level of 79.64. However, we recommend to be cautious when placing sell orders in the medium term. The MACD indicator is in negative territory.

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USD Index breaks with a bullish candlestick; the resistance level is at 79.88, take profit is at 80.15, and stop loss is at 79.61.