Elliott Wave Analysis: USD Index Aiming For 98 Zone
On USD index daily chart we are observing a big sideways pattern since start of 2015; it’s slow, sideways and overlapping price action which is a personality of a contra-trend movement that can be completed now. We see it as a flat correction in black wave IV; a three wave structure where final wave C should be made by five waves. Well, we have seen a nice decline from November of 2015 counted in five legs, but as an ending diagonal. That’s a reversal pattern that already caused a strong bounce in May, so ideally recent sharp leg down was just a pullback labeled as wave two within ongoing uptrend and recent sharp turn to the upside is undergoing wave 3, which could ideally reach 99 region.
USD Index, Daily
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On the lower time frame, price made a nice reversal higher a few weeks back from 93.00 area where a three wave set-back had completed a contra-trend move. Now we think that price could already be in a new bullish sequence which can reach for 98.00 area, but after a completion of a red subwave 2) that can be headed back to to 95.30 region for a support near 38.2% Fibo.
USD Index, 4H
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