07.10.201501:17 Forex Analysis & Reviews: Daily analysis of USDX for October 07, 2015

Long-term review

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The USDX is trying to perform a pullback towards the support zone of 95.26, where a rebound should be expected on the daily chart. This scenario could unfold in the near term as the index remains trapped above the 200 SMA in this time frame. However, a breakout below the level of 95.26 will expose the zone of 94.36.

On the H1 chart, we should note a strong pullback from the resistance level of 96.15, where is the zone of 200 SMA, and now the index could test the support zone of 95.38. If the USDX does a breakout below that territory, it will fall to the level of 95.03. The 200 SMA is pointing to the downside, and the MACD indicator is entering the negative territory.

Daily chart's resistance levels: 95.83 / 96.38

Daily chart's support levels: 95.26 / 94.36

H1 chart's resistance levels: 95.94 / 96.15

H1 chart's support levels: 95.38 / 95.03

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the US dollar index breaks with a bullish candlestick; the resistance level is at 95.94, take profit is at 96.15, and stop loss is at 95.73.

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