Daily chart: The USDX has fallen sharply, because the Fed Chairman Ben Bernanke announced that will mantain the stimulus program to the U.S. economy. Something that does not match the investors estimates in the U.S. dollar. The USDX broke the bullish trendline and support at the 80.62 level. Now the USDX this pattern forming a higher low below this support and is likely to fall to the 79.19 level in the medium term. The MACD indicator remains in negative territory and the USDX remains below the 200-day moving average.
H4 chart: The USDX fell below the support level of 80.50, and now it is forming a higher low pattern. The USDX could not fill the gap left when opening this week and this creates a lot of uncertainty in the USDX, because the USDX is very strong in its current bearish trend. The USDX remains below the 200-day moving average and the USDX is likely to fall to the bearish trendline near the 78.55 level. The MACD indicator remains in negative territory, but going into extreme oversold zone.
H1 chart: The USDX remains below the SMA 200 and now is forming a higher low pattern below the resistance level at 80.35. If the USDX achieves in breaking the support at the 80.15 level, it would be expected to drop to the level of 79.88. On the other hand, if the USDX breaks the resistance at the 80.35 level, it would be expected to rise to the level of 80.59. The MACD indicator is in the oversold zone and extremely negative territory, so we should be careful with the USDX, because this is very oversold and it is possible to see corrective movements in the coming days.
Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USDX Index breaks a bearish candlestick; the support level is at 80.15, take profit is at 79.88, and stop loss is at 80.42.
