USD index is in a strong uptrend since the US elections, a clear impulsive structure on the 4h chart that belongs to a bigger wave five visible on higher time frames.
As such, we see index headed up to 103-105 area in the next few weeks after any corrective move. At the moment, we see slow price action above 100.60; so it's wave four that we are tracking as a possible triangle correction that is pointing higher into wave five.
USD Index, 4h
A Triangle is a common 5 wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves B to D. A Triangle is either contracting or expanding depending on whether the channel lines are converging or expanding. Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3.
Basic Triangle Pattern:
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