Daily chart: The USDX hit the support level at 80.62 and is preparing to break it. If the USDX manages to break this support, it is expected to fall to the level of 79.19, but we must consider the USDX has had a very lateralized fall, so we would expect the formation of a higher low pattern, so that the USDX continues to drop. On the other hand, if the USDX makes a rebound on this support, it is expected to go up to the resistance at the 81.50 level, which houses the 200-day moving average. The MACD indicator is in negative territory, but is showing weakness in the bearish trend of the moment and is in high oversold zone.
H4 chart: In this chart, the USDX has been finding support on a bearish trend line that is drawn near the 80.60 level. If the USDX today manages to break that trend line, it is expected to fall to support at the 80.19 level. On the other hand, if the USDX manages to break the resistance at 80.94 level, it would be expected to rise to the level of 81.33. The USDX remains below the 200-day moving average and the MACD indicator is in a weak positive territory, so it is very possible that the USDX not perform very volatile movements today's session.
H1 chart: The USDX has moved sideways and for that reason we can not say exactly what their intraday trend is. However, what we can see in this chart is the formation of a higher low pattern. If the USDX achieves in breaking the support level at 80.59, it would be expected to drop to the level of 80.35. On the other hand, if the USDX manages to break the resistance 80.73 level, it would be expected to rise to the level of 80.93. The MACD indicator is in negative territory but is showing much weakness in this bearish trend which currently is presenting the USDX, so we could see possible rebounds in the USDX, during today's session.
Fundamental Outlook: In the U.S. at 12:30 GMT, Building Permits (Previous: 1.01M / Forecast: 0.98m) and the Core CPI (Previous: 0.1% / Forecast: 0.2%) will be published. Recall that today will be the second day of the G8 meetings.
Trading recommendations for today: Based on the H1 chart, Place buy (long) orders only if the USDX Index breaks with a bullish candlestick, the resistance level is at 80.73, take profit is at 80.93, and stop loss is at 80.52. Place sell (short) orders only if the GBP / USD pair with a bearish candlestick breaks, the support level is at 80.59, take profit is at 80.35, and stop loss is at 80.82.
