FX.co ★ Technical analysis of USDX for February 20, 2014

The Fed released the minutes from its January meeting. They like to further reduce its monthly bond purchases. Now the outcome was clear, which makes the US dollar stronger. As a result, gold dropped and stocks were lower at Wednesday's trading session. In the last couple of reports, we recommended that USD would move up. The 79.7-79.95 area looks very strong. During this week, the US dollar is making some strong base around the level of 79.95. During yesterday's trading session, the price turned back from the lower level, RSI also supported the price. In the hourly chart, RSI looks overbought, we expect the price to step back a bit towards the 80.06 and 80.0 levels.

Intraday support-

S1 80.7 R1 80.24

S2 79.93 R2 80.60

Positional-

S1 79.93 R1 80.60

S2 79.70 R2 81.10

Trades above the level of 80.23 gains more strength towards higher targets.