Daily chart: The USDX is trying to break the support at the 83.22 level, having had a week very bearish, which managed to break the strong support at the 83.74 level. There is the possibility that the USDX will makes a bullish rebound above this support level, which is unlikely in the short term, because the technical indicators are showing weakness in the USDX. If the USDX achieved in breaking the support level at 83.22, it would be expected to fall to the level of support 81.74. On the other hand, if the USDX makes a bullish rebound on this support, it would be expected to rise again until the resistance level at 83.74. The MACD indicator remains in negative territory, supporting a bearish outlook in the medium term, for this market.
H4 chart: The USDX is trying to form a higher low pattern, above the 200-day moving average and support at the 83.17 level. It would be very difficult for this market, the power to break these supports and the bullish trend line there below the 200-day moving average, because the USDX is bouncing on these levels and may again try to break resistance at the 83.49 level. On the other hand, if the USDX breaks the bullish trend line near the 93.00 level, it is expected to fall to 82.50 level in the medium term. The MACD indicator is moving into positive territory, which could predict rebounds bullish potential in this market, for the next few hours.
H1 chart: The USDX continues within the range between 83.52 and 82.97. The 83.27 level is acting as temporary pivot point in this market, which begins to form a Point of Control (POC). These levels will be vital for the development of the trend in this market, for this week. Above the resistance level at 83.52, a fractal resistance is formed and it is also located at 200-day SMA. If the USDX manages to break the resistance 83.73 level, it would be expected to rise to the level of 84.03. On the other hand, it is possible that the USDX is forming a higher low pattern on the support at 82.97 level and if this market can break this level, it is expected to fall to the level of 82.66. The MACD indicator is in negative territory, but gradually this territory is weakening, so it could be changed to positive territory for the next few hours.
Fundamental Outlook: For today's session at 14:00 GMT in the United States ISM Manufacturing PMI (Previous: 50.7 / Forecast: 50.6) will be published. If the current reading is higher than the forecast, the USDX market could make bullish movements during the hour.
Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USDX market breaks with a bearish candlestick, the support level is at 82.97, take profit is at 82.66, and stop loss is at 83.28. Place buy (long) orders only if the USDX market breaks with a bullish candlestick, the resistance level is at 83.73, take profit is at 84.03, and stop loss is at 83.43.
The material has been provided by InstaForex Company -
www.instaforex.comFor detail explanation and best discovery on market trends you may visit via
USDX: Daily analysis for June 03, 2013 . Thanks for your support on USDX: Daily analysis for June 03, 2013
