FX.co ★ Daily analysis of USDX for February 24, 2014

Daily chart: The USDX remains above the support level of 80.11 and still remains in a bearish position in this chart, as the USDX could be forming a higher low pattern. However, if the USDX makes a bullish rebound, it is expected to rise to the resistance level of 80.62. Furthermore, if USDX is able to consolidate below the level of 80.11, it's expected to fall to the level of 79.50. The MACD indicator is still in negative territory.

H4 chart: The USDX has found strong support for the bullish trend line near the 80.25 level. However, the USDX is within an area of great volatility in the trend is not very clear. If the USDX does make a breakout at the level of 80.48, it's expected to rise to the level of 80.65. Moreover, consolidation below 80.09 level could lead to USDX to fall to the support level of 79.81. The MACD indicator is in the overbought zone.

H1 chart: The USDX remains below the 200 SMA at this chart and below the resistance level of 80.35. Now, we have to be aware of a possible breakout in the support level of 80.15, as this could strengthen the bearish bias on the USDX. On the other hand, if the USDX makes a breakout on the resistance 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.