FX.co ★ Daily analysis of USDX for August 01, 2014

Daily chart: The USDX found resistance at the 81.50 level, since the USDX has made a pullback at that level. In addition, the USDX could start making corrective movements, because the USDX has been very overbought, so it is very normal for the USDX moves in range for a few days.

H4 chart: The USDX is trying to establish itself over the bullish trend line at the level of 81.45. However, keep in mind that the USDX has formed two fractals above this level, so the USDX could make a pullback and fall to the support level of 81.02. The MACD indicator is in the overbought zone.

H1 chart: The USDX has found resistance near to the 81.58 level, so the USDX continues to move in a range above the support level of 81.40. If the USDX does make a breakout at the level of 81.58, it's expected to rise to the resistance level of 81.73, which would strengthen the bullish trend. The MACD indicator 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 81.58, take profit is at 81.73, and stop loss is at 81.44.