The US Dollar Index tests resistance at 96.68 levels yesterday and reverses lower again. It has produced a significant engulfing bearish candlestick pattern on the 4H chart, indicating a potential reversal lower. Looking at the larger degree wave structure, the US Dollar Index seems more like to be producing an expanded flat (A)-(B)-(C) correction, that could push prices lower towards 94.00 levels at least. Also note that Wave (C) seems to unfolding now, and ideally it sub=divides into 5 waves in the form of a probable diagonal. Immediate price resistance is 97.00, followed by 97.71 while support is around 94.00 levels respectively. If the above structure holds true, we could witness a continued drop towards 94.00 and lower levels going forward.
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Disclaimer:
This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.