Daily analysis of USDX for October 17, 2014

The USDX is
finding support at the 200-day moving average and the bullish trend
line near the 84.85 level. The USDX could begin to strengthen the
bullish bias in the medium term, as the H4 chart, the USDX has formed
a fractal in the support level of 84.52, so this instrument could be
consolidated in bullish trend next week.

H4chart’s resistance
levels: 85.06 / 85.70

H4 chart’s support levels:
84.52 / 83.86

On the H1 chart, the USDX remains
below the 200 SMA, having found strong resistance at the level of
8527. The support level of 84.81 is very strong, because the USDX has
tried several times to make a breakout in that area. Caution should
be exercised power against the orders of the current trend because
the USDX could conduct a breakout in the support level of 84.81 and
falling to the level of 84.60.

H1 chart’s resistance levels:
85.03 / 85.27

H1 chart’s support levels:
84.81 / 84.60

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 84.81,
take profit is at
84.60,
and stop loss is at 85.03. 

The material has been provided by InstaForex Company – www.instaforex.com