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04.12.201401:04 Forex Analysis & Reviews: Daily analysis of USDX for December 04, 2014

Long-term review

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On the daily chart, the USDX is making a breakout at the level of 88.63, so massive buy orders in this instrument could lead the US dollar to reach a historic high levels at 90.40. However, like any sharp movement, the USDX could form another bullish pattern above the support level of 88.63. The MACD indicator is entering the neutral territory.

Daily chart's resistance levels: 90.40 / 89.00

Dailychart's support levels: 88.63 / 87.35

The USDX has consolidated above the support level of 88.71. It should be noted that the USDX has formed two fractals at the resistance level of 88.99. If the USDX manages to make a breakout at that level, it's expected to rise to the level of 89.25. However, caution should be used with this instrument, because the MACD indicator is moving into the negative territory.

H1 chart's resistance levels: 88.99 / 89.25

H1 chart's support levels: 88.71 / 88.43

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 88.99, take profit is at 89.25, and stop loss is at 88.71.

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