19.05.201407:16 Forex Analysis & Reviews: Daily analysis of USDX for May 19, 2014

Long-term review

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Daily chart: The USDX continues to find resistance at the 80.11 level and that it has limited the bullish road in the USDX. However, the USDX is forming a bullish pattern, so the bullish outlook remains alive. If the USDX does make a breakout at that level, it would be expected to rise to the level of 80.62, where the 200 SMA is located. MACD indicator is in positive territory.

H4 chart: The USDX has moved sideways without significant changes in the current trend. However, the USDX remains above the 200-day moving average, so the bullish bias remains alive. If the USDX does make a breakout on the resistance level of 80.35, it's expected to rise to the level of 80.58. The MACD indicator is in negative territory.

H1 chart: The USDX could fall to the support level of 79.88, where the 200 SMA is located, for a bullish rebound and climb back up to resistance level of 80.15. If the USDX does make a breakout at that level, it would be expected to rise to the level of 80.35. The MACD indicator is entering 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 80.15, take profit is at 80.35, and stop loss is at 79.95.

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