1, It’s a monthly 5 wave from 2011, I believe in 7 waves too but this is a 5 wave with divergence.
2, Because it’s a 5, I’ll use some tools for measuring 4th. wave and 5th. wave from monthly weekly and daily.
3, Now, we’re at monthly wave 3rd. of 3rd. and in a minor wave 5th. which means we have an ending diagnose.
4, An ending diagnose is a 5 wave with 4th. wave overlaping the 1st. wave.
5, If 5th. wave is an 1.618 wave 4 (pattern believers have a trend change area.) target is about 12467.
6, If 5th. wave is equal to the 1st. wave we’’ve passed that target already.
7, If 5th. wave is a 0.618- 0.764 area from 1st. to 4th. we have 12743- 13005.
8, So the monthly 3rd.wave target is 12400- 12743 area considering it' a huge move, profits taking begins from 12345.
9, Only FRB rises rates 0.25% in Nov. 2015 will trigger this scienario. After that a monthly 4th. wave is underway.
" After I did a simple maths, then I realized that if we started from 0.5% with a mid- value 1.375% then we will have a USdollar 2.25% intersts before Dec. 2016. "
I have to say, sometimes my analysis is surprising myself, just like this one. I'm still a apprentice for EW wave, I have a lot to learn.
The 12040 is where the most prices has been traded from Mar. 2015 to Oct. 2017, also the Trump election day's low is at 12011 which has been tested in two weeks. The way is down in a condition 12040 is holding. If there's any squeezing to break the Trump day's low, it will be a very good opportunity to take a bullet train on the way.
This is the FXCM US dollar index which is different from DXY, but this chart is hinting us the DXY's future.
Without bias but with an evolution - Victor.Y.F