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
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
Written by www.ew-forecast.com