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07.01.201506:20 Forex Analysis & Reviews: Daily analysis of USDX for January 07, 2015

Long-term review

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On the daily chart, the USDX continues to strengthen above the support level of 90.40. But today, we can see that this instrument could enter a phase of consolidation, so it is likely that the USDX will fall to the support level of 90.40 in the medium term to form a higher high pattern and gain momentum until the resistance level of 93.44.

Daily chart's resistance levels: 93.44 / 96.59

Daily chart's support levels: 90.40 / 88.63

It seems that the USDX has managed to get out of the range set between the levels of 91.66 and 91.24. Now, this instrument could start to form a bullish pattern to reach the resistance level of 92.08. If the USDX manages to make a breakout at that level, it would be expected to rise to the level of 92.51 in the short term. The MACD indicator remains in positive territory.

H1 chart's resistance levels: 92.08 / 92.51

H1 chart's support levels: 91.66 / 91.24

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 92.08, take profit is at 92.51, and stop loss is at 91.66.

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