USDX Daily Analysis for August 13, 2013

Daily chart: The USDX is trying to break the resistance at 81.50 and if it succeeds, it is expected to rise to the level of 82.51, in the medium term. However, we must emphasize that it is very likely that the USDX is forming a higher low pattern, to continue falling. If the USDX makes a bearish rebound at current levels would be expected to fall to the level of 80.62. If the USDX manages to break that level, it is expected to fall to the level of 79.19. The MACD indicator remains in negative territory, but is showing signs of extreme oversold and the USDX is still below the 200 day moving average.

 

H4 chart: The USDX is encountering strong resistance at the bearish trend line near the 81.50 level. Is likely to continue to fall the USDX and bearish next target would be the support level of 80.94. On the other hand, if the USDX managed to break the resistance at the 81.72 level. would be expected to rise to the level of 82.15, close to the SMA 200. The MACD indicator remains in positive territory, but this is already beginning to show signs of weakness in the bullish trend of the moment.

 

H1 chart: At current levels and near the 200 day moving average, it is forming a Point of Control (POC), which could act as a strong resistance on the USDX. If the USDX manages to break the support at the 81.40 level, it is expected to fall to the level of 81.09. On the other hand, if the USDX managed to break the resistance at 81.58 level, would be expected to rise to the level of 81.80. The current bearish trend is still going strong, while the bullish trend in this chart continues to weaken. The MACD indicator remains in neutral territory, so we must be cautious when making trading at current levels which is the USDX.

 

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USDX Index breaks a bearish candlestick; the support level is at 81.40, take profit is at 81.09, and stop loss is at 81.71.

Source: www.instaforex.com

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