Overview of #USDX (US dollar index) with the current day forecast
The direction of the fluctuating dollar exchange rate shown on its index graph coincides with the development process of the descending expanded flat. The final part of the wave that started this year has reached the minimum required level of downward expansion. Wave analysis of the whole structure shows its incompleteness. This gives grounds for waiting for the continuation of the current bearish trend.
The upward movement of the index from September 8 ended at the upper boundary of the reversal zone. The wave level of the last unfinished bear wave from October 27 has already gone beyond the rollback. The wave reached the support zone located on the strong level of resistance on a large scale.
Today, the change in the oscillation rate of the instrument can be considered reliable. The upper limit of the day's upward movement is limited within the calculated resistance zone.
Boundaries of resistance zones:
- 93.50 / 60
Boundaries of support zones:
- 93.05 / 92.95
NZD / USD outlook for the current day
In the recent months, major currency New Zealand dollar has lost its correlation with other major world currencies. The last actual wave for today is the bearish formation from July, 27th. Structural analysis indicates a high wave potential of the descending wave. A month ago, the price reached the wide zone upper limit of the potential reversal. As shown in the chart, the formation of a distinct ascending zigzag of irregular shape started on October 27.
In the first half of the day today, it is possible to set the flat tone of the oscillators with the descending vector. Closer by the end of the day, recovery is expected with an upward reversal movement. The zone of resistance will have limited scope on the daily volatility of the pair.
Boundaries of resistance zones:
- 0.6940 / 70
Boundaries of support zones:
- 0.6860 / 30
Explanations to the figures: For simplified wave analysis, a simple waveform is used that combines 3 parts (A; B; C). Of these waves, all kinds of correction are composed and most of the impulses. On each considered time frame the last and incomplete wave is analyzed.
The areas marked on the graphs are indicated by the calculation areas in which the probability of a change in the direction of motion is significantly increased. Arrows indicate the wave counting according to the technique used by the author. The solid background of the arrows indicates the structure formed, the dotted one indicates the expected wave motion.
Attention: The wave algorithm does not take into account the duration of the tool movements in time. The forecast is not a trading signal! To conduct a trade transaction, you need to confirm the signals of your trading systems.
* The presented market analysis is informative and does not constitute a guide to the transaction.
