After a elongated rally is not rare to find an ending contractile diagonal. Usually this create a snap reverse. Usually this pattern exceeds the 1-3 line when form it's 5th wave In this scenario the 1 to 1.618% proportion for wave 5)) increases the odds of the turning point.
The 5th wave is forming ending diagonal. There may be rally up to the base of the diagonal. I took my target, the 50% retracement of wave (A).
Now might be the perfect time to buy to enter right before the strong bullish wave 3. It looks like wave 2 has developed into an expanding diagonal. Here is a zoomed out version of where we are on the longer term: Here is an example of an expanding diagonal: www.wavetrack.com
Euro has great influence on UXY. Several Europe economic indicators have got new higher scores. Recently Euro/USD resists bears attack at 1.3800. Federal Funds Rate is a good indicator to present attraction of USD. At some extent USD is not popular to speculator. Look at this picture, we can see wave five is failed. We can identify wave A easily. Wave A is...