USD Index: Minor corrective decline could be near completion

January 18, 2017 08:39 AM
Elliott Wave Analysis: USD Index

The updated chart of the USD Index shows us that the pair is trading at the start of red Wave 5) of 3, and can face a minimum three wave corrective reversal after blue Wave 3-circled finds a top. Afterwards a temporary correction should follow within the upcoming Wave 4-circled to around the upper corrective channel line.

USD Index, daily

On the 4-hour chart of USD Index we are looking at a three-wave correction in Wave 4) unfolding as a potential double zig-zag pattern. If so, then a final push lower is now here, which may find a low near at 100-100.60 area. An impulsive bounce from here and out of a downward channel would confirm a reversal.

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 He also is founder of forex services on provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website: