USD index has turned down last week, into a new correction that should be made by three waves. We are tracking wave (4) that is part of an ongoing motive structure in big black wave V that could reach levels around 103-104 in months ahead. Invalidation level is at 93.83; as long this one holds trend is up.
USD Index, Daily
On the lower time frame, USD index fell sharply lower last week which has been technically expected after an ending diagonal in fifth wave of an impulsive move. Current leg down is very strong, so it belongs to a bigger downward structure. We will be tracking a zigzag so be aware of more weakness after wave B which could retrace back to 99.00 area.
USD Index, 4H
A zig-zag is a 3-wave structure labeled A-B-C, generally moving counter to the larger trend. It is one of the most common corrective Elliott patterns.
Basic Zig-zag:
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