Elliott Wave Analysis: USD Index Trading Wihtin An Uptrend
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 4h chart of USD Index, we see that price is still trading lower around the 95.60 price area giving us the idea that red wave 2) may still not be completed and that a possible reversal may still be around the corner, near the 95.55 wave B) support area. As such sub-wave C could now be in final stages, with price now trading in minor blue wave iv.
USD Index, 4h
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