USDX Daily Analysis for August 22, 2013

Daily chart: The USDX is breaking the resistance at the 81.50 level and this continues to respect the bullish trend line. It is very likely that the USDX rises to the 200 day moving average near the 81.85 level. On the other hand, it’s likely to fall back to bullish trend line. However, the USDX is still going strong in its current bullish trend, so we recommend to follow the trend of the moment. The MACD indicator is entering positive territory, which could support our bullish outlook.

 

H4 chart: The USDX broke the resistance at the 81.33 level and now, this is trying to consolidate above 81.72 level, but has not succeeded yet, because there is a bearish trend line nearby, offering resistance on the USDX. For now, we recommend waiting for the formation of a lower high pattern, to continue placing buy orders, in favor of the current trend. On the other hand, if the USDX again manages to break the support level at81.33, would be expected to drop to the level of 80.94. The MACD indicator remains in positive territory, so that the bullish trend is still very strong.

 

H1 chart: The USDX failed to consolidate above the resistance at the 81.58 level, but now it is trying to break that level and if it succeeds, it is expected to rise to the level of 81.80. On the other hand, we must bear in mind that the USDX is trying to consolidate above the 200 day moving average and the Point of Control (POC) near the 81.25 level, which would support our bullish intraday outlook on the USDX. However, if the USDX achieves in break the support level at 81.40, it’sexpected to drop to the level of 81.25. The MACD indicator is in extreme overbought territory and entering negative, so we must be cautious.

 

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USDX Index breaks a bullish candlestick; the resistance level is at 81.58, take profit is at 81.80, and stop loss is at 81.37.

Source: www.instaforex.com

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