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

Daily chart: the USDX has had a bullish momentum at support level of or 82.51. Since then this instrument is forming a bullish pattern above that level. Now, it is likely that the USDX rise to resistance level of 83.22. However, the USDX could begin to perform corrective movements. The MACD indicator continues in positive territory.

H4 chart: the USDX has been consolidated under the bullish trend line, since the USDX has found strong resistance at that level. However, if the USDX does a pullback at that level, it would be expected to fall to the support level of 82.35. In addition, a breakout at that level could lead to the USDX falling to the 200-day moving average. The MACD indicator is in positive territory.

H1 chart: the USDX did a bullish rebound at the support level of or 82.50. So now, this instrument is consolidating above the level of 82.67 with the formation of a bullish pattern. If the USDX manages to make a breakout at the resistance level of 82.85, the next target would be the level of 82.97 in this chart. The MACD indicator is entering overbought area.

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 82.85, take profit is at 82.97, and stop loss is at 82.72.