USD Could Turn Up: Elliott Wave View on USD Index And Pound

By: Gregor Horvat | Thu, Jan 2, 2014
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We have seen some volatility and spikes during the holiday period on FX board but if we look at the daily chart of USD Index we can see that price did not go far lately. We see sharp rally up from 79.00 October low followed by a deep pullback which we think it represents a corrective price action. As such, our bias is bullish, for a move back to 81.57. If that is the case then obviously we expect to see pressure against the EUR, GBP and other risk-on currencies.

USD Index daily Elliott Wave Analysis

US Dollar Index Daily Chart

Below we have the intraday chart of GBPUSD which is still bullish, but we see a shape of an ending diagonal now with subwave v) testing 1.6600/1.6650 resistance zone. An impulsive reversal down to 1.6457 key level would put bearish price in action. We are still waiting on confirmation signs before we may pull any trigger for shorts!

GBPUSD 4h Elliott Wave Anlaysis

GBP/USD 4-Hour Chart

 


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Gregor Horvat

Author: Gregor Horvat

Gregor Horvat
www.ew-forecast.com

Gregor Horvat

Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of www.ew-forecast.com, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on: SafeHaven.com, FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. He recently won the award on FXStreet.com for Best Forex Analysis in 2016. At www.ew-forecast.com he helps clients and educate them about the Elliott wave prinicple and how to label and track unfolding patterns in real time.  His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty however is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators.

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