FX.co ★ Daily analysis of USDX for January 02, 2014

Daily chart: The USDX opened the new year with a strong bullish gap above the support level of 80.11. Now, the USDX is trying to break the resistance level of 80.62. If successful, it is expected to rise to the level of 81.05, where the 200 day moving average is located. However, it is very likely that the USDX will make a bearish rebound at current levels and fall to the support level of 80.11. The MACD indicator is in neutral territory.

H4 chart: The USDX is consolidating above the 200 SMA and above the support level of 80.49. If the USDX manages to break the resistance level of 80.75, it is expected to rise to the level of 80.83. Furthermore, the USDX is forming a bullish pattern. Slow movements are expected for the rest of the session. The MACD indicator is in positive territory.

H1 chart: As on the H4 chart, the USDX bullish pattern is forming a support above the level of 80.59. If the USDX manages to break the resistance level of 80.73, it is expected to rise to the level of 80.93. However, USDX formed a fractal near these levels and now the USDX is trying to break the support level of 80.59. If successful, it is expected to fall to the level of 80.35. The MACD indicator is entering extreme overbought zone.

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USDX Index breaks a bullish candlestick; the resistance level is at 80.73, take profit is at 80.93, and stop loss is at 80.52.