EW Analysis: USD Index Slowed Down Into A Correction
Hello traders!
Today we will talk about the most interesting currency in the last month - US Dollar.
As you can see DXY made strong and impulsive recovery recently, mainly because all the assets were down due to panic across the world and also financial crisis, so investors are rather in cash now and that's why is USD so strong.
USD is currently down, but looking at the bigger picture, seems like it's just testing previous resistance area as a support here and the main reason why we are observing potential support is a three-wave a-b-c corrective decline from the highs.
As you can see, there's a chance of a triangle in the middle, which in Elliott wave theory occurs only in waves "b", "4" or "x" and in some cases even "y". So, if that's the case, then a recent decline from the highs should be corrective, because triangles cannot occur in wave "ii", which means that we should be aware of a limited downside and potential bullish reversal soon.
Of course, every analysis needs to be confirmed before you may act, so only if we see sharp and impulsive recovery back to 101 region, only then we can confirm a completed corrective decline within uptrend.
Be humble and trade smart!
If you like what we do, then please support us with likes and comments! Thanks!
All the best and stay healthy!
Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
Today we will talk about the most interesting currency in the last month - US Dollar.
As you can see DXY made strong and impulsive recovery recently, mainly because all the assets were down due to panic across the world and also financial crisis, so investors are rather in cash now and that's why is USD so strong.
USD is currently down, but looking at the bigger picture, seems like it's just testing previous resistance area as a support here and the main reason why we are observing potential support is a three-wave a-b-c corrective decline from the highs.
As you can see, there's a chance of a triangle in the middle, which in Elliott wave theory occurs only in waves "b", "4" or "x" and in some cases even "y". So, if that's the case, then a recent decline from the highs should be corrective, because triangles cannot occur in wave "ii", which means that we should be aware of a limited downside and potential bullish reversal soon.
Of course, every analysis needs to be confirmed before you may act, so only if we see sharp and impulsive recovery back to 101 region, only then we can confirm a completed corrective decline within uptrend.
Be humble and trade smart!
If you like what we do, then please support us with likes and comments! Thanks!
All the best and stay healthy!
Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
