U.S. Dollar Index: Big Correction May Be Over; Bulls Can Make A Run
Gregor Horvat | May 10, 2016 05:56AM ET
On the US Dollar Index daily chart we are observing a big sideways pattern since the start of 2015. It has slow and overlapping price action, which is a personality of a contra-trend movement.
We are observing a flat pattern in black wave IV. It's a three wave pattern where final wave C should be made by five waves.
Well, we can see a nice decline from November 2015 that can be in five legs, but as an ending diagonal. That's a reversal pattern which may send price into a strong bullish mode in the second part of this year, after price recovers back above 95.22.
So far we have seen a nice bounce from lower trendline support, so we suspect that price is going higher.
US Dollar Index Daily Chart
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