FX.co ★ Daily analysis of USDX for February 21, 2014

Daily chart: The USDX continues bullish movements above the support level of 80.11, but remember that the USDX could be forming a higher low pattern. If the USDX makes a breakout at the level of 80.11, it's expected to fall to the level of 79.19. Furthermore, if the USDX continues with the bullish bias, it's expected to rise to the level of 80.62. The MACD indicator is oversold.

H4 chart: The USDX is forming a bullish pattern above the bullish trend line, which is near the 80.25 level. If the USDX makes a breakout at the level of 80.48, it's expected to rise to the level of 80.65, where the 200 SMA is. On the other hand, it is very likely that the USDX will try a bearish rebound at current levels and fall to the level of 80.09. The MACD indicator is in positive territory.

H1 chart: The USDX is finding resistance at the 200 SMA and the 80.35 level. These levels could slow future increases in the USDX as the USDX continues in a long downtrend, so it is advisable to place sell orders at this crucial point. However, if the USDX makes a breakout at the level of 80.35, it's expected to rise to the level of 80.59. The MACD indicator is in negative territory.

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USD Index breaks with a bearish candlestick; the support level is at 80.15, take profit is at 79.88, and stop loss is at 80.42.