Hello fellow traders. Another instrument that we have been trading lately is USDX. 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 bearish sequences in the cycle from the 10/01 peak, targeting 96.02-95.43 area . Consequently, we advised members to avoid buying USDX and keep on selling the rallies in the sequences of 3,7,or 11 swings whenever get chance. In further text we’re going to explain Elliott Wave Forecast and Trading strategy.
USDX 4 Hour Elliott Wave Analysis 12.17.2019
Break of 11/01 low made USD Index bearish against the 98.56 peak . Cycle from the October 10th peak looks incomplete now, calling for further weakness. We don’t recommend buying USDX in any proposed recovery. Strategy is waiting for the clear 3 waves bounce and then sell the Index in 3,7,11 swings when get chance.
USDX 1 Hour Elliott Wave Analysis 12.17.2019
USDX is correcting the cycle from the 98.55 peak. At this stage bounce looks incomplete. It’s showing 5 swings up from the lows. We expect to see another leg up toward 97.59-97.99 (sellers area). At the marked blue box sellers should ideally appear for proposed decline or 3 wave pull back alternatively. We don’t recommend buying USDX in proposed leg up, and favor the short side – selling the index in the blue box.
As our members know Blue Boxes are no enemy areas , giving us 85% chance to get a bounce. H1 Trend is bearish and we expect to see sellers in the blue box for further decline or 3 waves pull back at least. As soon as the pull back reaches 50 fibs against the ((x)) black low, we will make short positions risk free. Invalidation level for sellers is break above 1.618 fib extension: 97.99.
USDX 1 Hour London Elliott Wave Analysis 12.26.2019
USDX made leg up and reached ((w))-((x)) equal selling area at 97.59-97.99. Sellers appeared right at the blue box and the price is already showing reaction from there. We are calling X red recovery completed at 97.82 high. However we need to see further separation down from the peak to get confirmation we have ended 3 waves from the lows at least.
USDX 1 Hour London Elliott Wave Analysis 12.27.2019
97.82 high held nicely and we got further separation down as expected. The decline reached 50 fibs against the ((x)) black low. So members who took short positions from the blue box should be already risk free.
It’s crucial to fully understand our official strategy: trading the equal legs and sequences in 3,7,11 swings. Combined with Trend Trading it gives you very powerful system that protects your account and makes you profit. If not already familiar with this strategy, all you have to do is to sign up for 14 days Free Trial and watch our Free Educational Video in membership area. If still having some questions after watching it, feel free to let us know and we will help. You can ask questions in 24 Hour Chat Room and in Live Analysis Sessions.