07.10.201403:14 Forex Analysis & Reviews: Intraday trading recommendations on USDX for October 07, 2014

USDX

The US dollar started this week on a bearish note, being unable to breach previous week's high of 86.75. In yesterday's session, the US dollar erased its Friday's gains completely and fell to a 5-day low. The USDX managed to pull back from the 5-day low and close above Friday's opening price. It represents the bulls using every dip to buy. Today, as of now in the Pacific session the USD index made a high at 85.93 and started falling towards the previous day's low at 85.18. The index has the nearest support at 85.07 levels (20Dsma).

We recommend buying at the current market price of 85.18 using sl 85.07 and targets at 85.45, 85.65 levels. The prices are closed and trading below hourly key moving averages (12ema). In the early Pacific hours, the price was rejected at 34hrsma and drifted lower to 20Dsma. In case, if the price manages to trade above 34hrsma at 85.95, it can extend its increase towards 86.13. Safe buying will be triggered only above 86.15 (21hrsma). On the down side, the index has support at 85.18, the previous day low, and an 8-hour low, below this, 85.07 (20Dsma) will act as strong support during the week.

Trade-

Buy at cmp 85.18 using sl 85.07 and targets at 85.45, 85.65. levels