USDX Daily Analysis for August 15, 2013

Daily chart: The USDX has rebounded in the 200 day moving average near the 81.81 level. Now, the USDX is trying to break the support at the 81.50 level and this could be a possible continuation of the overall bearish trend in the USDX, so this drop could be extended to the support level of 80.62. However, we must bear in mind that this can only be a corrective move in the bullish trend of the moment in the USDX. If the USDX fails to make a bullish rebound at current levels, would be expected to rise to the level of 82.51. The MACD indicator remains in neutral territory.

 

H4 chart: The USDX found strong resistance at the 81.72 level and now, this is trying to break the bearish trend line that’s nearby and the support at the level of 81.33. If the USDX manages to break these levels, it is expected to fall to the level of 80.94. It is very likely that the bearish trend may be prolonged for the rest of this week, because the USDX failed to climb to the 200 day moving average. However, if the USDX managed to break the resistance level of 81.72, would be expected to rise to the level of 82.15. The MACD indicator is in extreme overbought and entering negative territory.

 

H1 chart: The USDX could not break the resistance that formed in the Point of Control (POC) near the 81.80 level. In yesterday’s session, the USDX fell sharply and broke the support at the 81.58 level. Now the USDX is forming a higher low pattern above the support at the level of 81.40. If the USDX manages to break that 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 the 81.58 level, would be expected to rise to the level of 81.80, where is located the POC. The MACD indicator is in negative territory, which could support our bearish outlook for today’s session in 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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