USD-index reversed nicely higher last week from 81.32 which appears to
be a first impulsive structure that is part of a larger and new bullish cycle
for the USD. As such, we expect much higher levels on USD-index in days and
weeks ahead especially if we consider that decline from 83.50 was made a nice
clear three waves which is a corrective price action, called a zig-zag.
Ideally, market is now in wave 2) pull-back that will look for a support around
81.20. Critical/invalidation level is at 81.32 as wave 2) must never retrace
more than 100% of wave 1). So as long that level holds we are
looking higher.
What
is Zig-Zag?
A zig-zag is a
3-wave structure labeled A-B-C, generally moving counter to the larger trend.
It is one of the most common corrective Elliott patterns.
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