Traders, the USD is mixed ahead of US cash open. Currency is down against EUR and GBP but up against commodity currencies. The EURUSD is trading close to 1.2575 highs from Monday, so I decided to look at the USD Index; an index (or measure) of the value of the USD relative to a basket of foreign currencies such as Euro, Japanese yen, Pound sterling, Canadian dollar, Swedish krona and Swiss franc (notice that AUD and NZD are NOT included here).

Well, on the hourly price chart of USD index we see a corrective movement from Nov 7th high. It was an irregular correction with fail breaks at wave b) and wave c). In fact rally from 87.18 was impulsive, followed by current three wave decline to 87.50. So ideally USD index is headed higher. If that is the case, then EUR, GBP and CHF will still find sellers.

USD Index 1h Elliott Wave Analysis

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