On the 4h chart of USD Index we can see market turning up from 96.50 area after a formation of an ending diagonal in wave 5 which shows first signs of an important reversal. This reversal can be labeled as first wave A/1 as part of a three wave recovery, that will take price only higher. Once previous swing high at 97.77 level is breached, we can expect more gains to follow in the long run. All being said, current weakness may be temporary wave B/2.
USD Index, 4H
Also, check our latest video analysis on GBP/USD, EUR/USD and USD Index. Click here
https://www.youtube.com/watch?v=wRZgeCOo03E&feature=youtu.be
Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All our work is for educational purposes only.
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