FX.co ★ Daily analysis of USDX for August 22, 2014

Daily chart: The USDX is trying to form a bullish pattern above the level of 82.00, so the USDX could soon climb to the resistance level of 82.51. The USDX could begin to enter a phase of consolidation, due to which this instrument is overbought. The MACD indicator stays in positive territory.

H4 chart: The USDX has found resistance in bullish trend line which is near to the 82.40 level, so the USDX is forming a bullish pattern. However, the USDX could perform a pullback at current levels and falling to the support level of 81.72. The MACD indicator is in overbought zone.

H1 chart: The USDX has found resistance at the level of 81.32, where this instrument has formed two Fractals, so the USDX is trying to find support at the level of 82.02. If the USDX manages to make a breakout at that level, it would be expected to falls to the support level of 81.73. The MACD indicator remains in negative territory.

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 82.32, take profit is at 82.50, and stop loss is at 82.15.