USDX: Daily analysis for June 07, 2013
Daily chart: In yesterday’s session, the USDX was very bearish, breaking the support level at 82.51 and now, it is trying to break the support at the 81.50 level. We must be careful at this level, because the USDX is trying to make a bullish rebound in the 200-day moving average, which could invalidate a future bearish outlook for this market. If the USDX achieves in breaking the support level at 81.50, it would be expected to drop to the level of 80.62. It is not advisable to put orders for swing trading in this market, because in the current price, the USDX defines its general trend in the long term. If the USDX makes a bullish rebound in the 200 SMA and the support at the 81.50 level, it is expected to rise again to the resistance at the 82.51 level. However, it is possible that the USDX pattern forms a higher low above this support. The MACD indicator is in negative territory.
H4 chart: In this chart, the USDX is below the 200-day moving average and is forming a higher low pattern, above the support at the 81.33 level. If the USDX manages to break this support, it is expected to fall to the level of 80.70, which houses one bearish trend line. On the other hand, we must consider that the USDX is too oversold, due to falling market that had this side in yesterday’s session. If the USDX makes a rebound in this support, it is expected to rise to the level of 81.72. The MACD indicator is extremely oversold, so expect to see consolidation movements in the USDX.
H1 chart: The USDX broke some important levels in developing bearish intraday trend of this market. Now, the USDX is forming a higher low pattern below the resistance level at 81.58. It would be best to wait for a breakout in the 81.09 support level, for the USDX falls to the level of 80.73. The USDX tried to break the support at the level of 81.40 and made to fall to the level of 81.05, returning to the level of resistance at 81.58, so that the breakout in that support was unsuccessful. If the USDX manages to break the resistance at the 81.58 level, it is expected to rise to the level of 81.80. The USDX remains below the 200-day moving average and the MACD indicator is extremely oversold.
Fundamental outlook: For today’s session, Non-Farm Employment Change (Previous: 165K / Forecast: 167K) and the Unemployment Rate (Previous: 7.5% / Forecast: 7.5%) will be published in the United States at 12:30 GMT.
Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if USDX market breaks with a bearish candlestick, the support level is at 81.09, take profit is at 80.73, and stop loss is at 81.45. Place buy (long) orders only if the USDX market breaks with a bullish candlestick, the resistance level is at 81.58, take profit is at 81.80, and stop loss is at 81.73.
The material has been provided by InstaForex Company – www.instaforex.com