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USD Index Bulls To Conquer 101?

Published 05/07/2015, 06:05 AM
Updated 07/09/2023, 06:31 AM

Yesterday we gave you our insight on the exchange rate between the euro and USD, saying that EUR/USD parity is still possible. But the European currency weights nearly 60% of the USD index. So, if a pattern suggests EUR/USD should fall, there has to be a similar one in the opposite direction on the chart of the USD index.
US Dollar Index 4 Hour Chart

The correction we saw in EUR/USD was a flat. It seems the USD index is about to complete the exact same pattern. Three waves for A, three waves for B and five waves for C. According to the Elliott Wave Principle, once wave 5 of C finds its bottom, a significant recovery is likely to begin. A recovery, which has the potential to go higher than the previous major top. In other words, the bulls might be getting ready for 101 and above.

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