FX.co ★ Daily analysis of USDX for October 21, 2014

At the H4 chart, the USDX continues to find support on the bullish trend line at the 85.04 level, so that eventually, the USDX could rise to the level of 86.00 in the medium term. On the other hand, if the USDX makes a breakout at the trend line, the next target would be the support level of 84.47.

H4 chart's resistance levels: 85.06 / 85.65

H4chart's support levels: 84.52 / 83.86

The USDX is consolidating below the 85.03 level. However, remember that this instrument has found strong support at the 84.81 level in the past. On the other hand, it is noteworthy that the USDX remains below the 200 SMA in the H1 chart, so the bearish bias is very strong in the USDX. The MACD indicator is entering neutral territory.

H1 chart's resistance levels: 85.03 / 85.27

H1 chart's support levels: 84.81 / 84.60

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USD Index breaks with a bearish candlestick; the support level is at 84.81, take profit is at 84.60, and stop loss is at 85.02.