Dollar Index Will Not Give Up Bullish Intentions
Dollar Index
The 4 hour trend is Long, into an oversold read (buy support). as the Usd moved all over the charts as overnight trade unfolded in the previous session. As much as the U.S. leads potential growth, the debt issue and employment questions may impede a substantial break-and-hold on the Usd. Global risk valuations are dominated by the best-of-the-worst scenarios, and seen each day around the red flag economic release reactions. Momentum is strong. Favor a straddle (Long and Short near term plays).
Dollar Index Daily view
Elliott Wave: No change on dollar index, where the triangle is still developing. On the 4h chart below, the sub-waves of a wave (4) correction are shown. It is a triangle pattern, which is structured by A)-B)-C)-D)-E) legs, where each should be sub-divided by three waves. A move higher is expected in the near-term for wave D) to complete somewhere around the 81.00 area, while 79.80 support holds.
Once wave D) is complete, we will look for another three wave pull-back in wave E), before we can call the end of a triangle correction, look for Usd bullish continuation patterns
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