For Traders

Analytical Reviews

Technical analysis

14.10.201400:15 Forex Analysis & Reviews: Daily analysis of USDX for October 14, 2014

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

On the H4 chart, the USDX is finding support at the level of 85.06, a fairly important for the development of the trend in the medium term USDX area, as this instrument could attempt a breakout at the support level to fall to where the 200-day moving average is located. However, remember that the USDX has formed several fractals above the level of 85.50, which hinders the development of a bullish momentum in the USDX.

H4 chart's resistance levels: 86.10 – 86.75

H4chart's support levels: 85.06 – 84.52

The USDX is conducting a breakout at the support level of 85.37, the next target on the downside would be the level of 84.81. During the American session yesterday, the USDX showed a strong pullback in the 200 SMA at H1 chart and this could support our bearish outlook, because the MACD indicator is in negative territory.

H1 chart's resistance levels: 85.27 – 85.49

H1 chart's support levels: 85.03 – 84.81

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USD Index breaks with a bearish candlestick; the support level is at 85.03, take profit is at 84.81, and stop loss is at 85.25.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.