Elliott Wave Analysis: USD Index Trading In A Three-wave Rally

Good morning traders! Let’s start the week with USD Index and its 4h strucutre.

On USD Index we are tracking a three wave recovery from the low which can either be a correction; an A)-B)-C) move, or start of a new impulsive bullish trend if we consider that it can be red wave 3) underway now. However, it is too soon to confirm if trend has changed or not, but what really matters is that in both cases there is room for red wave 3)/C) to climb up to 94.12 key resistance level.

USD Index. 4H

Gregor Horvat, based in Slovenia, has been in the forex markets since 2003. He is a technical analyst and individual trader who has worked for Capital Forex Group and TheLFB.com. He also is founder of forex services on www.ew-forecast.com. EW-Forecast.com provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website: http://www.ew-forecast.com