17.03.201402:42 Forex Analysis & Reviews: Daily analysis of USDX for March 17, 2014

Daily chart: The USDX is strengthening the bearish bias, as the USDX is approaching the support level of 79.19. That level could serve as a strong support for the USDX, so it could make bullish and bearish patterns to make a breakout at that level. On the other hand, if the USDX makes a bullish rebound at current levels, it is expected to rise to the level of 79.90. The MACD indicator is in negative territory.

H4 chart: The USDX found resistance near the 79.69 level and now the USDX is trying to make a breakout at the support level of 79.32. If successful, it is expected to fall to the level of 78.70. On the other hand, it is likely that the USDX will form a double bottom pattern. If successful, it is expected to rise again to the level of 79.69. The MACD indicator is in neutral territory.

H1 chart: The USDX is forming a higher low pattern above the support level of 79.39. If the USDX does make a breakout at that level, it would be expected to fall to the level of 79.13. On the other hand, it is expected to rise to the resistance level of 79.64 if the USDX makes a trend change at current levels. The MACD indicator is entering neutral territory.

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 79.39, take profit is at 79.13, and stop loss is at 79.64.