The Dollar index has made a strong pull back yesterday after the comments by ECB president Mario Draghi. The long-term trend remains bullish. There is however a chance that the index is forming a bearish wedge or in elliott wave terms an ending diagonal pattern to complete the upward move from 79.75.
The Dollar index remains above the Ichimoku cloud support. The upward move consists of overlapping wave structures. I believe this is a characteristic of an ending diagonal pattern or technically speaking of a bearish wedge at the end of an upward move. The Dollar index might make one fresh higher high but I believe it is close to reversing the trend. Bulls will need to be very cautious and a break below support at 87.50 will be a critical blow to the long-term bullish trend.
The weekly chart continues to be bullish and shows no worrying signals. So, no reversal signs according to our weekly chart but bulls need to be extra cautious at current levels because there is increased chances of seeing a trend reversal as the rise from 79.75 is at its final stages. Important support is at 87.75. If broken, this would be the first reversal sign.
The material has been provided by InstaForex Company - www.instaforex.com
For detail explanation and best discovery on daily market trends and news you may visit via #USDX Wave analysis for December 5, 2014 . Thanks for your support.
No comments:
Post a Comment