31.07.201401:23 Forex Analysis & Reviews: Daily analysis of USDX for July 31, 2014

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Daily chart: The USDX has finally hit the resistance level of 81.50, where it is very likely that the USDX start forming a bullish pattern with corrective movements, because the USDX has been in a bullish trend quite pronounced. If the USDX does make a breakout at that level, the next target would be the level of 82.51.

H4 chart: The USDX is trying to make a breakout at the level of 81.55, where is located one bullish trend line. If successful, it is expected to rise to the level of 82.00. However, the USDX could make a pullback and fall back to the level of 81.02. The MACD indicator remains in positive territory.

H1 chart: The USDX is forming a bullish pattern above the support level of 81.40. During yesterday's session, the USDX had a strong bullish momentum. If the USDX does make a breakout on the resistance level of 81.58, it's expected to rise to the level of 81.73 in the short term. The MACD indicator is in negative territory.

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 81.40, take profit is at 81.58, and stop loss is at 81.21.

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