24.08.201423:05 Forex Analysis & Reviews: Daily analysis of USDX for August 25, 2014

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Daily chart: The USDX had a bullish momentum during the Friday's session as this instrument continued to form a lower high pattern below the resistance level of 82.51. Note that if the USDX manages to make a breakout at that level, the next target would be the resistance level of 83.22 in the medium term. The MACD indicator stays in positive territory.

H4 chart: The USDX has made a rebound near to the support level of 82.20. So it is trying to make a breakout in the bullish trend line. If it succeeds, it would be expected to rise to the level of 83.65 in the medium term, where another trend line is located. For now, it is better to wait for this instrument to get consolidated above that bullish trend line.

H1 chart: The USDX is trying to form a lower high pattern above the support level of 82.32, so the next objective is the resistance level of 82.50. If the USDX manages to make a breakout at that level, it would be expected to that rise to the level of 82.67. The MACD indicator is entering overbought area.

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 82.50, take profit is at 82.67, and stop loss is at 82.35.

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