FX.co ★ Daily analysis of USDX for January 26, 2015

The bullish momentum at the USDX seems to be unstoppable, because during the last session, the USDX did a strong breakout at the 94.18 level. Now, the next resistance zone on this instrument is the level of 97.52. Currently, from the technical view, the USDX is overbought, as the MACD indicator is reaching those extreme levels in the upside and the USDX could start to form a bullish pattern.

We can see on the H1 chart a bullish formation above the support level of 94.38 and the near-term resistance is at the level of 95.48, the latest Friday's high. The 200 SMA is still bullish, but the MACD indicator is bearish. Anyway, we cannot neglect the fact that the USDX was performing a retracement to favor the current bullish bias. Because of it, this instrument could make a breakout at the resistance level of 95.48 with a target placed at the 96.63 level.

Daily chart's resistance levels: 97.52 / 99.17

Dailychart's support levels: 94.18 / 93.02

H1 chart's resistance levels: 95.48 / 96.63

H1 chart's support levels: 94.38 / 94.02

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USD Index breaks with a bullish candlestick; the resistance level is at 95.48, take profit is at 96.63, and stop loss is at 94.32.