04.03.201403:06 Forex Analysis & Reviews: Daily analysis of USDX for March 04, 2014

Daily chart: The USDX formed a fractal near the 79.60 level and made a bullish rebound near that level, so far, the USDX is trying to make a breakout at the level of 80.11. If successful, it is expected to rise to the resistance level of 80.62. Furthermore, if the USDX performs consolidation below the level of 80.11, it's expected to fall again to the level of 79.60. The MACD indicator is in neutral territory.

H4 chart: The USDX found resistance at the level of 80.09, after the USDX fell to the support level of 79.81, which did a bullish rebound with the formation of two fractals. If the USDX does make a breakout at the resistance level of 80.15, it's expected to rise to the level of 80.44, where the 200-day moving average is located. The MACD indicator is oversold and entering positive territory.

H1 chart: The USDX has consolidated above the point of control at the level of 79.88 . Now, it is very likely that the USDX rises to the resistance level of 80.15, where the 200-day moving average is located. If the USDX manages to consolidate above this level, would be expected to rise to the resistance level of 80.35. On the other hand, if the USDX does make a breakout at the support level of 79.88, it's expected to fall to the level of 79.64. The MACD indicator is in positive territory.

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 79.88, take profit is at 79.64, and stop loss is at 80.12.