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05.02.2014 01:58 AM
Daily analysis of USDX for February 05, 2014

Daily chart: The USDX remains above the 200 SMA with a clear bullish pattern. The bullish bias is still there in the USDX as USDX has not touched levels below the 200 SMA yet. The nearest resistance is located at the level of 81.50, so the USDX needs some momentum favored by fundamental factors in order to get out of the range of indecision in which it remains this week. The MACD indicator is in positive territory.

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H4 chart: The USDX has been moving within a low range between 81.19 and 80.99 levels. If the USDX manages to consolidate below 80.99 level, it is likely that the USDX to fall to the 200 SMA. However, any breakout above the level of 81.29 would be a continuation of the current upward trend in the USDX. The MACD indicator remains in negative territory.

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H1 chart: The USDX has found resistance at the level of 81.19 where the closest point of control is located. The USDX would need to break out that level in order to further strengthen the bullish trend. However, you should keep in mind that the USDX is very close to the 200 day moving average, so we should be cautious when placing intraday orders today. MACD indicator is in neutral territory.

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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 81.19, take profit is at 81.40, and stop loss is at 80.98.

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