The direction of short-term trends in the U.S. dollar index fits into the algorithm of the main wave model formation in the descending extended plane. Since the beginning of last year, the development of the final part of the wave (C) has determined the long bearish trend of the index, which has not been completed so far.
Beginning at the end of January, an upward rollback is nearing completion. It formed a flat corridor and the upper boundary of which is the most likely zone for the completion of the entire ascent.
In the near future, you can count on the final breakthrough of the index up. A short break in the upper boundary of the control zone is possible, but the probability of this is small. In the following day, a reversal is expected and the dollar depreciates again.
Boundaries of resistance zones:
- 91.00 / 91.20
Boundaries of support zones:
- 89.60 / 89.40
Explanations of the figures:
For simplified wave analysis, a simple waveform is used that combines 3 parts namely A, B, and C. All types of correction are created and most of the impulses can be found in these waves. Every time frame is considered and the last incomplete wave is analyzed.
The areas marked on the graphs indicate the probability of a change in the direction of motion has significantly increased as calculated in the areas. Arrows indicate the wave counting following the technique used by the author. A solid background of the arrows signifying the structure has been formed while the dotted one means the expected wave motion.
Attention: The wave algorithm does not take into account the duration of the movement of tools in time. The forecast is not a trading signal! To conduct a bargain, you need to confirm the signals used by your trading systems.
