Elliott Wave Analysis: USD Index Is Expected To Fall Further

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USD Index Elliott Wave Analysis
USD Index Elliott Wave Analysis

Written by www.ew-forecast.com |  

On USD Index we are tracking a bearish wave count  after recent sharp fall through 81.00 support which caused a sell-off into wave three of three, typically the strongest move within a five wave pattern. As such, we anticipate even lower levels now, with next target seen at 79.60 that could be reached once price breaks through the lower trend-line of an upward corrective channel.

USD Index 4h

USD Index Elliott Wave Analysis
USD Index Elliott Wave Analysis

On the USD index hourly chart below we see a three wave rally from 80.1. Elliott wave theory says that three waves are contra-trend movements, a –b-c as labeled on the chart. Notice that in wave c we also have a wedge pattern which looks like an ending diagonal. Ending diagonals are reversal pattern, so if we are correct then USD Index should turn sharply to the downside bearish. Decline is expected to accelerate after a break of lower support line and 80.48 swing low.

USD Index 1h

USD Index Elliott Wave Analysis
USD Index Elliott Wave Analysis

 

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Gregor Horvat first made his name in Slovenia and has become world famous in the forex market since 2003. He is both a trader and a technical analyst who offers trading strategies on the Fibonacci and Elliot Wave principle. His main focus is on currency pairs, U.S. stock market, gold and oil. Gregor Horvat found the forex service offered on http://www.ew-forecast.com/. This website provides traders technical analysis, while putting emphasis on behavioral patterns. These are derived from the Elliott Wave Principle (EWP). Traders who are interested in the entry and exit positions, and he probability of the former and latter follow the EWP on a regular basis.