A punishing day that was for the US Dollar today, upon central bank words that a rate hike would likely be delayed.
The move in the USDollar index weaved a familiar Wolfe Wave 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.
Best,
David Alcindor Predictive Analysis & Forecasting Durango, Colorado - USA
Would the usd have to hit the 1 4 line befor xua and euro start moving twords there tg?
4xForecaster
⋅
Hello @Sokun - Sorry I did not read/answer your question sooner.
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.
David
4xForecaster
⋅
18 JUN 2015 - UPDATE:
As per Geo's OffSet Rule, this geometry is now falling under the geometric rules of the Geo, defining the level of Point-4 as the new HIGH-PROBABILITY target, whereas the 1-4 Line now falls back to a lesser probability level (Geo's "OffSet Rule"):
David Alcindor
4xForecaster
⋅
18 JUN 2015 - In effect, this suggests that the USDollar will likely remain subdued to bearish pressures, and continue to behave with consistence to yesterday's central bank decision, which is likely to weigh on the USD over the next days or weeks.
From Twitter/LinkedIn:
----------
USDOLLAR rises as forecast; Expect resistance, pushback at geometry's underside:
USD EUR JPY GBP CAD #forex
----------
David Alcindor