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
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