22.07.201402:32 Forex Analysis & Reviews: Daily analysis of USDX for July 22, 2014

Long-term review

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Daily chart: The USDX remains strong in the bullish trend, because its is above the 200-day moving average, where the USDX is trying to form a bullish pattern. If the USDX manages to consolidate above the 80.62 level, it is expected to rise to the level of 81.05 in the medium term. The MACD indicator is in positive territory.

H4 chart: The USDX is trying to make a breakout on the resistance level of 80.60, so the next target would be the level of 81.02. However, it is very likely that the USDX make a pullback, although the USDX remains very strong even in the bullish bias. The MACD indicator is in negative territory.

H1 chart: The USDX continues to find resistance at the 80.59 level, while the USDX remains robust in the bullish trend, because the 200-day moving average is below the current price of the USDX. However, if the USDX does make a bearish rebound, next target would be the support 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 support level is at 80.59, take profit is at 80.73, and stop loss is at 80.45.

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