07.05.201512:07 Forex Analysis & Reviews: Daily analysis of USDX for May 07, 2015

Long-term review

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On the daily chart, the USDX is still falling and looking for new weekly lows because it is trying to break the support level of 93.95 with a lower low pattern formation. Due to this, it would be expected to test the level of 92.64, which is very close to the current position of 200 SMA in this time frame. The MACD indicator is still at negative territory.

The US dollar index is looking to make a breakout at the support zone of 93.85 and now it is forming a bearish pattern in the short term. The current angle of the 200 SMA is telling us about a possible bearish continuation in our current intraday outlook. If the falls continue, the USDX could test the level of 93.05 and keep an eye on the MACD indicator as it is entering negative territory.

Daily chart's resistance levels: 95.00 / 96.30

Dailychart's support levels: 93.95 / 92.64

H1 chart's resistance levels: 94.70 / 95.34

H1 chart's support levels: 93.85 / 93.05

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 93.85, take profit is at 93.05, and stop loss is at 94.66.

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