FX.co ★ Daily analysis of USDX for May 23, 2014

Daily chart: The USDX is trying to stay above the support level of 80.11 with the formation of a bullish pattern. It is very likely that the USDX rises to 200 SMA, where the USDX could make a pullback. However, if the USDX does make a breakout on the resistance level of 80.62, it's expected to rise to the level of 81.50. The MACD indicator is in positive territory.

H4 chart: The USDX remains above the 200 SMA and the support level of 80.15. Now, the USDX is trying to make a breakout on the resistance level of 80.35. If successful, it is expected to rise to the level of 80.60. On the other hand, if USDX does a breakout level of 80.15, it would be expected to drop to the level of 80.09. The MACD indicator is in positive territory.

H1 chart: The USDX has made a breakout at the level of 80.15, so the next target would be the resistance level of 80.35. If the USDX does make a breakout at that level, it would be expected to rise to the level of 80.59. On the other hand, if the USDX does make a breakout in the support level of 80.15, it is expected to fall to the level of 79.88, which is below the 200 SMA. MACD is 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 80.35, take profit is at 80.59, and stop loss is at 80.11.