Trading higher probably into a new big impulse

December 7, 2016 09:47 AM
Elliott Wave Analysis: USD Index

USD Index was in a big sideways pattern unfolding since start of 2015; slow and overlapping price action with a personality of a contra-trend movement that now looks completed based on a five-wave movement up from the 91.90 level that can be a leading diagonal in Wave 1-circled. If that's the case, then recent pullback was sub-wave 2) that appears completed at 95.84, near lower support line of an upward channel. As such, trend remains in bullish mode now for wave three that has reached the first target near 101.00, but ideally dollar will move much higher in weeks ahead.

USD Index, daily

 

Regarding the 4-hour chart, we can see USD Index is in a strong uptrend since the U.S. elections, a clear impulsive structure on the 4-hour chart that belongs to a bigger wave five from a weekly period.

Now as we can see, price seems to be undergoing a possible complex correction, known as a double zig-zag that can find its support and a possible reversal zone near the 99.44 level from where bulls can again take over. 

 USD Index, 4-hour

 

About the Author

Gregor Horvat, based in Slovenia, has been in the forex markets since 2003. He is a technical analyst and individual trader who has worked for Capital Forex Group and TheLFB.com. He also is founder of forex services on www.ew-forecast.com. EW-Forecast.com provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website: http://www.ew-forecast.com/