29.10.201400:40 Forex Analysis & Reviews: Daily analysis of USDX for October 29, 2014

Long-term review

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On the daily chart the USDX is trying to find support at the level of 85.18, even though the instrument remains strong in our current bullish outlook. However, the USDX has formed four fractals at the resistance level of 86.20. The USDX could make a breakout at the support level of 85.18 to fall to the level of 84.29. The MACD indicator remains in negative territory.

Daily chart's resistance levels: 86.20/87.35

Daily chart's support levels: 85.18/84.29

The USDX is trying to form a lower low pattern below the 200 SMA on the H1 chart. However, the USDX is finding strong support at the 85.27 level, a level that could serve as a strong support zone for the USDX to consolidate again above the 200-day moving average, but the next target in the bearish trend remains the 85.03 level.

H1 chart's resistance levels: 85.49 / 85.73

H1 chart's support levels: 85.27 / 85.03

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 85.27, take profit is at 85.03, and stop loss is at 85.49.

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