USDX: Daily analysis for September 27, 2013
Daily chart: The USDX is trying to break the resistance at the 80.62 level, but has not achieved it yet due to indecision in the USDX. The USDX is likely to conduct a bearish rebound at the current levels and fall to support at the 80.11 level. On the other hand, if the USDX manages to break this support, it is expected to fall to the level of 79.65, to form a higher low pattern and fall back to the level of 79.19. The MACD indicator is entering extreme oversold zone.
H4 chart: The USDX is getting out of the low range again and it broke the resistance at the 80.50 level. The USDX is likely to try to climb to the resistance at the 80.75 level, but we must be vigilant against any breach of support at the 80.50 level, which could strengthen the current higher low pattern that the USDX is currently forming. On the other hand, if the USDX manages to break the resistance at the 80.75 level, it would be expected to rise to the level of 80.87. The MACD indicator remains in positive territory.
H1 chart: The USDX is trying to break the resistance at the 80.59 level and if it succeeds, it is expected to rise to the level of 80.73, above the 200-day moving average. On the other hand, if the USDX makes a bearish rebound at current levels would be expected to fall to the level of 80.35. If the USDX manages to break that level, it is expected to fall to the level of 80.15. The MACD indicator remains in negative territory, although with a tendency to return to neutral territory.
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 80.35, take profit is at 80.15, and stop loss is at 80.54.
The material has been provided by InstaForex Company – www.instaforex.com