04.02.201503:08 Forex Analysis & Reviews: Daily analysis of USDX for February 04, 2015

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On the daily chart, the USDX had a very bearish day during yesterday's session, as this instrument is performing a bearish consolidation below the level of 94.18. That opened the way for a test at the support level of 93.02. If the USDX breaks that zone, it would be expected to visit the 92.23 level in the medium term.

The USDX is currently located below the 200 SMA on the H1 chart, with a lower low pattern formation. Now, the USDX finds support at the level of 93.49 and currently those movements could jeopardize the strong bullish intraday bias that the instrument had during last weeks. If the USDX does a bearish consolidation below the support level of 93.49, the next target would be the level of 93.05.

Daily chart's resistance levels: 94.18 / 95.45

Dailychart's support levels: 93.02 / 92.23

H1 chart's resistance levels: 93.94 / 94.38

H1 chart's support levels: 93.49 / 93.05

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 93.49, take profit is at 93.05, and stop loss is at 93.94.

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