The dollar index remains supported at 80.25-20. This is a crucial support level that if broken the whole Elliott wave count could change, as there are no impulsive waves with overlaping waves. For now, the wave count we prefer is shown in the first chart below.
We expect prices to have finished wave 4 and wave 5 to be under way. We expect a new high towards 80.80-81 to complete this move that started at 79.64. Short-term support is found at 80.20 and then at 80.05-10. Short-term resistance is found at 80.45-55 that if broken would accelerate the upward move towards 81.
The trend in the daily chart still remains downward, but there are small signs of a trend reversal. The downward trend is being challenged and if 5 waves upwards are completed from the low, then there is high probability to see the index reaching the 81.70-82 area over the coming months. We remain in the short term bulish, as long as prices trade above 79.85.
The material has been provided by InstaForex Company - www.instaforex.com
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