Here too, a temporary rally in the bear-beaten Dollar might occur to the geometric extent defined in the chart, as a just completed its 5th cardinal position:
A structural level, as well as the Wave's 1-4 Line are likely to dampen any further advance, as one should expect that Fed's no-hike decision is likely to limit an further ambition for the time being.
OVERALL, the $USD is likely to rally reactively to yesterday's sell-off. However, expect significant overhead hurdles to dampen the rally. The most immediate high-probability price action is offered through Mr. Bill Wolfe's pattern, unless price fell to lower levels and completed a Geo - In either case, Price level of Point-4 is likely to impose its strongest ripost.
Predictive Analysis & Forecasting
Durango, Colorado - USA
Alias: 4xForecaster (Twitter, LinkedIn, StockTwits)
Signal Service or Private Course - Contact: MarketPredictiveAnalysis@gmail.com
All updates on https://twitter.com/4xForecaster
One problem though ... Model calls for another leg up into the 5'' level.
- Excellent find!
If Model is correct, then a higher high could be carved. But that's okay as long as the SL is set at 1.414 + spread + 3-5 pips above the 4-5'' leg (pushes it a bit for a 4-hour chart, so that's up to the trader's own preset risk management).
Worth keeping an eye on is the fact that your Point-2 may in fact be part of a slightly LARGER geometry, in which current 5'' would represent Point-3. In such a case, the Model would be right to expect a push back UP, anticipating Point-5 to complete the geometry.
Beware of wolfes.
Why another leg up? Simply because the Predictive/Forecasting Model offers a high-probability of this occurring. Once it does, I stay hands off and for it for to materialize. If it fails to do so, I place a trade and I move on.
Feel free to post. Being wrong is part of trading, just like boxing. One learns to take hits, and then one learns the distances from bad hits.
I've learn to through rocks at boxers and run real fast - That's what my Model is for.