In this technical blog we’re going to take a quick look at the Elliott Wave charts of USDX, published in members area of the website. As our members know USDX has incomplete bullish sequences in the cycle from the December 31. low. Consequently, we advised members to avoid selling it and keep on buying the dips in the sequences of 3,7,or 11 swings. In further text we’re going to explain Elliott Wave Forecast and Trading strategy.

USDX 1 Hour Elliott Wave Analysis 1.21.2020

Break of 01/10 peak made USDX bullish against the 97.081 low. Cycle from the December 31st low is showing higher high sequences , calling for further rally. Current short term view suggests USDX is giving us pull back against the 97.08 low. Pull back looks incomplete at the moment. Although we expect another leg down – wave (c) of ((b)), we don’t recommend selling USDX against the main trend. Strategy is buying USDX in 3,7,11 swings against the 97.08 low. At the marked blue box: 97.47-97.37 area we would like to be buyers for rally toward new highs or 3 waves bounce at least. Invalidation of the trade would be break below 1.618 fib extension:97.37.

USDX 1 Hour Elliott Wave Analysis 1.22.2020

USDX gave us proposed leg down (c) of ((b)) . The price found buyers right at the blue box area : 97.47-97.37. We are calling wave ((b))) blue pull back completed at 97.39 low. However need to see break above 01/20 peak to confirm next leg up is in progress. We already got decent bounce from the blue box. As a result , members who entered long trades should be already risk free.

USDX 1 Hour Elliott Wave Analysis 1.24.2020

In the meantime 97.39 low held nicely during the short term ((ii)) blue pull back and we got break above 01/20 peak. Current view suggests USDX can be ending cycle from the 97.083 low as wave W red. We can be getting X red pull back that should ideally find buyers again in 3,7,11 swings as far as pivot at 97.083 low holds.

Keep in mind market is dynamic and presented view could have changed in the mean time. You can check most recent charts in the membership area of the site. Best instruments to trade are those having incomplete bullish or bearish swings sequences.We put them in Sequence Report and best among them are shown in the Live Trading Room.