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USDX Daily Analysis for August 06, 2013
Daily chart: The USDX has found support at the level of 81.50 and the 200 day moving average. But in yesterday’s session, the USDX found resistance at the 82.51 level, which means that these levels will be vital for the development of the general trend in the USDX. If the USDX manages to break the support at the 81.50 level, it is expected to fall to 80.62 level and this would start a new bearish trend in the long term. On the other hand, if the USDX managed to break the resistance at the 82.51 level, it is expected to rise to the level of 83.22 and this would totally change the general trend bullish. The MACD indicator is extremely oversold and entering neutral territory.
H4 chart: The USDX is maintained within a low range and below the 200 day moving average, after it found strong resistance. If the USDX manages to break the support at the 81.72 level, it is expected to fall to the level of 81.33. On the other hand, if the USDX managed to break the resistance at 82.15 level, would be expected to rise to the level of 82.55. The MACD indicator remains in negative territory and it is likely that the current bearish trend gripping much strength in today’s session.
H1 chart: The USDX is consolidated itself below the 200 day moving average. Furthermore, the USDX has formed a Point of Control (POC) near the resistance level at 82.02. If the USDX manages to break that level, it is expected to rise to the level of 82.32. Furthermore, if the USDX achieves in breaking the support level at 81.80, it’s expected to drop to the level of 81.58. The bearish trend may strengthen today’s session, because the USDX has met strong resistance in the POC and this will be very difficult to keep up with the current weakness presented in this chart. The MACD indicator is in neutral territory.
Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USDX Index breaks a bearish candlestick; the support level is at 81.80, take profit is at 81.58, and stop loss is at 82.02.
Source: www.instaforex.com
