Tuesday, June 9, 2015

Dollar Index Preparing For A Deep Correction?

After a very long time, the dollar is finally testing the bearish side. 

The long term advance  that ended temporarily or permanently at 100.765 is appearing to favour the bearish side in what looks like a deep correction. 


Double and triple zigzag corrective patterns form typical swings of higher highs/ higher lows for the bulls and lower highs/lower lows for the bears. 


Price is expected to break below 93.06 (the last low) to form a lower low, and that would be a typical double zigzag. The dip is projected to get to 90.30. 


This should affect Usd currency pairs especially the Eurusd which is presently forming the same pattern to the upside.

Price will prove everything right or wrong. Elliot waves theory helps to follow price and project possible turning points.

The labelled support and resistance levels in the chart below should be watched with keen interest.

Updates will come as price movement proceeds

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