06.08.201401:55 Forex Analysis & Reviews: Daily analysis of USDX for August 05, 2014

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Daily chart: The USDX is trying to make a breakout on the resistance level of 81.50, because this instrument had a bullish momentum during yesterday's session. If successful, it is expected to go up to the next target resistance level of 82.51, which would strengthen the bullish trend in the long term. The MACD indicator remains in positive territory.

H4 chart: The USDX has formed a bullish fractal above the trend line, so it is likely that the USDX will start forming a bullish pattern. If the USDX does make a breakout at the level of 81.70, it's expected to rise to the resistance level of 82.00. Furthermore, the USDX could make a pullback at current levels. The MACD indicator is in positive territory.

H1 chart: The USDX has made a breakout at the 81.40 level, so now the USDX is forming a bullish pattern below the resistance level of 81.58. If the USDX does make a breakout at that level, it would be expected to rise to the resistance level of 81.73 during today's session. 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 81.58, take profit is at 81.73, and stop loss is at 81.43.

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