13.05.201503:12 Forex Analysis & Reviews: Daily analysis of USDX for May 13, 2015

Long-term review

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We have already called for a possible recover from lows regarding this Index, but the USDX is already making a lower low pattern formation. This lower swing could cause a correction in the coming hours until the resistance zone of 95.00 at least. If the USDX makes a breakout at this level, it would be expected to rise to the level of 96.30.

The short-term outlook is still bearish, as the USDX found strong dynamic resistance at the level of 94.70. Now, the Index is already supported in the current bearish bias by the 200 SMA on the H1 chart. In case of success, the bearish road could be extended until the support zone of 93.85. It should be noted that the bullish momentum is still possible.

Daily chart's resistance levels: 95.00 / 96.30

Dailychart's support levels: 93.95 / 92.64

H1 chart's resistance levels: 94.70 / 95.34

H1 chart's support levels: 93.85 / 93.07

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USD Index breaks with a bearish candlestick; the support level is at 93.85, take profit is at 93.07, and stop loss is at 94.65.

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