23.01.201505:08 Forex Analysis & Reviews: Daily analysis of USDX for January 23, 2015

Long-term review

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During the last session, the USDX had a strong bullish momentum above the support level of 93.02. Because of it, this instrument already reached the resistance level of 94.18. But we need to bear in mind that the USDX could start forming a higher high pattern. Because of the overbought levels, this instrument is currently holding on lower timeframes.

On an intraday basis, the USDX formed a fractal next to the resistance level of 93.44, where this instrument is trying to move in a range to develop a bullish pattern. We can see the USDX did a rebound at the 200 SMA on H1 chart. Also, the price action showed us that the USDX has always tried to stay above that SMA during the last days, favoring the bulls' force.

Daily chart's resistance levels: 94.18 / 97.52

Dailychart's support levels: 93.02 / 91.88

H1 chart's resistance levels: 94.33 / 95.63

H1 chart's support levels: 94.02 / 93.05

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 94.33, take profit is at 95.63, and stop loss is at 93.03.

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