USDX Daily Analysis for August 28, 2013

Daily chart: The USDX made a strong bearish rebound in the level of 81.50, a resistance very important in this chart. It is very likely that the USDX to fall to support at 80.62 level, due to the weakness presented by the USDX in recent days. However, we do not rule out the possibility of a break in the 81.50 resistance level and if it succeeds, it is expected to rise to the level of 81.75. The MACD indicator remains in positive territory, but showing a lot of weakness in the bullish trend.

 

H4 chart: The USDX is forming a higher low pattern, below the support at 81.33 level and below the bearish trend line close by. It is likely that the USDX fall to the support level at 80.94. However, there are many supports in the way that could stop future falls in the USDX. On the other hand, if the USDX managed to break the resistance at the 81.33 level, would be expected to rise to the level of 81.72, near 200 SMA. The MACD indicator is in negative territory, which could support our bearish outlook for the USDX.

 

H1 chart: The USDX is trying to consolidate below the Point of Control (POC) near the 81.22 level. Because of this, the USDX is forming a higher low pattern, having fallen below support at 81.40 level and the 200 day moving average. If the USDX achieves in breaking the support at the 81.09 level, would be expected to drop to the level of 80.93. On the other hand, if the USDX consolidates a bullish trend, it is expected to rise to the level of 81.40. The MACD indicator is extremely oversold and entering positive 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 81.09, take profit is at 80.92, and stop loss is at 81.25.

Source: www.instaforex.com

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