• 287 days Will The ECB Continue To Hike Rates?
  • 287 days Forbes: Aramco Remains Largest Company In The Middle East
  • 289 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 689 days Could Crypto Overtake Traditional Investment?
  • 694 days Americans Still Quitting Jobs At Record Pace
  • 696 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 699 days Is The Dollar Too Strong?
  • 699 days Big Tech Disappoints Investors on Earnings Calls
  • 700 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 702 days China Is Quietly Trying To Distance Itself From Russia
  • 702 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 706 days Crypto Investors Won Big In 2021
  • 706 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 707 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 709 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 710 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 713 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 714 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 714 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 716 days Are NFTs About To Take Over Gaming?
Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

  1. Home
  2. Markets
  3. Other

USD Index EWP Update

I am "exploring" new ideas with the purpose of discovering a coherent EWP, which would suit with the complex corrective internal structure of the so far 7-wave up leg off the May 2011 lows.

What is obvious is that there is no way that we can count the price structure as impulsive. Therefore price is involved in some kind of countertrend move.

Basically a countertrend EWP includes: Zig Zag, Double Zig Zag or a Triple Zig Zag.

All the corrective patterns have to unfold a final impulsive or ending diagonal wave (C).

As I mentioned in my last follow up of the EUR last Monday: "The key issue remains to get the right count of the complex corrective down leg off the May 4 top. The main problem is that the internal structure of this large down leg, even if it is corrective at some point should unfold an impulsive wave (C), but so far in my opinion everything remains corrective. This problem could be solved if price instead of unfolding an impulsive wave (C) it traces an Ending Diagonal".

The same reasoning of drawing a potential path from evidence can also be applied in the case of the USD INDEX from the May 4 low.

US Dollar Index Daily Chart
LargerImage

This scenario implies that price is unfolding a potential Zig Zag (ABC), and the wave (C) tracing an Ending Diagonal.

The extension 1.618 target for the wave (C) is at 87.11

If the ED is playing out then at the June 1 high price has established the wave (III).

Even if we already have the required overlap of the wave (IV) below the wave (I) high, the assumed wave (IV) would have the "right look" with a larger pullback, but maintaining a converging sequence.

This scenario would be aligned with what I have been suggesting for SPX, since while the USD Index completes the ED with the wave (V), SPX should complete the wave (B) of the second Zig Zag of the wave (X) (From the November 2008 low).

 

Back to homepage

Leave a comment

Leave a comment