Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

USD Index Aiming At 87?

ByEWM Interactive
Published 10/19/2014, 01:40 AM
Updated 07/09/2023, 06:31 AM

The USD Index started its spectacular rally from 78.90 in May. In the beginning of October it almost reached 87.00, but the bulls decided to take a rest and prices fell down to 84.50. The important question is how does this two-and-a-half-figures decline fit into the Elliott Wave count? Searching for the answer, we will examine a daily chart of the USD Index, which could help us come up with an idea.
USD Index Daily Chart
The chart suggests, that the drop-off from 86.86 is a natural wave 4 correction of the previous extended third wave. This assumption is supported by the so-called “rule of alternation”, which is only a guideline actually. It states that the two corrective waves – 2 and 4 – tend to be of different type. For example, if wave 2 is a sharp zig-zag retracement, wave 4 would move sideways, probably in the form of a flat or a triangle. The price action of the US dollar index shows a flat second wave and a sharp zig-zag in wave four. If this is the correct count, we should expect another rally to take prices higher, probably above the 87.00 mark. If this happens, we will have a complete five-wave impulse, which, according to the theory, should be followed by a three-wave decline.

Original post

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.