08.08.201401:29 Forex Analysis & Reviews: Daily analysis of USDX for August 08, 2014

Long-term review

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Daily chart: The USDX has formed a fractal above the resistance level of 81.50, so the USDX is trying to consolidate above this level with the formation of a bullish pattern. If successful, the next target would be the 82.51 level. However, it is recommended to wait until a breakout occurs to plan to trade in the long term in the USDX.

H4 chart: The USDX continues to find resistance at the bullish trend line near the 81.55 level. For now, the USDX is trying to make a breakout at that level to further strengthen the current bullish trend. However, if the USDX makes a pullback at current levels, it would be expected to fall to the support level of 81.02. The MACD indicator is in neutral territory.

H1 chart: The USDX has made a rebound at the support level of 81.40, so this instrument is trying to make a breakout at the resistance level of 81.58. If successful, the next target would be the resistance level of 81.73, which is also a strong level, so care must be taken when placing orders swing below that level. The MACD indicator is entering neutral 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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