FX.co ★ Daily analysis of USDX for January 27, 2015

The USDX is still very bullish on the main time frames, such as the daily chart. Because of it, it's wise to wait for a bullish formation in order to follow the current bias on this instrument. We recommend to wait for a retracement to the support level of 94.18 and later we could see about a higher high pattern formation. On the other hand, the USDX could extend the fall until the 93.02 level, if the sellers take the flag during this week.

On the H1 chart, the USDX found strong resistance at the level of 95.48. Besides, we can expect a consolidation very close to the support level of 94.38. Currently, we need to wait for a breakout at the resistance level of 95.48 to continue putting buy positions on this instrument and also, to follow the trend, that is currently supported by the bullish 200 SMA, that is pointing upwards. The MACD indicator is entering the positive territory.

Daily chart's resistance levels: 97.52 / 99.17

Dailychart's support levels: 94.18 / 93.02

H1 chart's resistance levels: 95.48 / 96.63

H1 chart's support levels: 94.38 / 94.02

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 95.48, take profit is at 96.63, and stop loss is at 94.32.