Elliott wave Analysis: Bulls on USD Index Trading Higher, while Crude OIL Points Lower

Intermediate

USD Index is breaking above 96.15 meaning that wave C can be underway, or maybe even wave 3 of a new bullish run, but in both cases there is room for DXY to continue towards 97.00 projected area while market trades above 95.50. Break below that level would be a trend changer.

USD Index, 4h

usd index

Crude oil made a five-wave development from the 66.64 level, which is an indication of a completed wave 5 of a higher degree, and that a new, minimum three-wave bearish reversal to the downside is unfolding. We are currently tracking a five-wave drop in wave A/1, which can be ending near the 66.00 zone. Once wave A/1 fully shows up, a new temporary correction as wave B/2 may follow, in which case the upper Elliott wave channel line connected from 76.83 high will get breached and new resistance at 69.8 or 72.2 can be seen.

Crude oil, 4h

crude oil

Gregor Horvat

Elliot Wave Technical Analyst

Gregor Horvat is based in Slovenia and has been in the Forex market since 2003. He has been working for Capital Forex Group and TheLFB.com.

He is the owner of www.ew-forecast.com, which prov...continued

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