12.10.201418:06 Forex Analysis & Reviews: Daily analysis of USDX for October 13, 2014

Long-term review

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The USDX continues to recover above the support level of 85.18, as this instrument is trying to finish forming a bullish pattern that has been developing for several days. On the upside, the USDX may find resistance at the level of 86.20, as the USDX formed a fractal above that level. The USDX is far from the 200 SMA and the MACD indicator is moving into negative territory.

Dailychart's resistance levels: 86.20 – 87.35

Dailychart's support levels: 85.18 – 84.29

As we can see in the H1 chart, the USDX is consolidating back above the support level of 85.73, where the 200 SMA is located. The USDX formed a fractal at the resistance level of 85.95 so far, this instrument may enter in a phase of consolidation in the short term. The MACD indicator is entering overbought area.

H1 chart's resistance levels: 85.95 – 86.17

H1 chart's support levels: 85.73 – 85.49

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 85.95, take profit is at 86.17, and stop loss is at 85.73.

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