A punishing day that was for the US Dollar today, upon words that a rate hike would likely be delayed.
The move in the USDollar index weaved a familiar geometry, completing at its Point-5, as shown in the following chart:
Based on this 4-hour chart, one should consider the probability of a reactive rally. Look for a commitment (BACA) across the 1-3 Line, with a high-probability attainment of the 1-4 Line, the exact price level being likely at a corresponding 0.618 or 0.786 Fibonacci value.
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This is a very valid question, as it addresses the synchronous action of price across Forex and indices.
Very often, you will see that one would reach a target, then consolidate, giving time for another chart (be it a similar index or a completely different vehicle, such as a correlated Forex pair) to complete its own move. This is best seen between $USDollar and $DXY for instance as far as indices, or say $XAUUSD and $AUDUSD, as far as index vs. correlated Forex pair comparison.