Elliott Wave Analysis: Bulls Pushing Price Higher On USD Index; 99 Zone Could Be Reached
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 at 93.00 area where a three wave corrective retracement had completed. Now we think that price could already be in a new bullish sequence which can reach for 98.60 area in days ahead, where 161.8 Fibonacci projected level can be met.
USD Index, 4H
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