Dollar is heading back to 12100 as the bullish correction continues. What should be expected next? The following 1 August Dollar Index Elliott wave analysis useful technical insights.
Dollar has returned upside after a little drop to 12050. In the last update, we spotted the possibility of a 3-wave corrective rally after the 19th-26th July bearish impulse wave. We expected that at the end of the bullish correction, price would drop fast. The chart below was used in the last update.
The chart above shows the wave analysis from 12170. From 12170 to 12030, price completed a bearish impulse wave pattern. This could signify the end of the bullish phase as explained in the last update. Last week rally from 12030 was not corrective therefore it’s now expected to be wave (a) of the bullish correction of the 12170-12030 impulse wave dip. The current dip is labelled wave (b). Will price make a new move up to 12110 to complete wave (c)? The dollar is bearish but for swing and position traders, the best short entry would be to wait till wave ii (circled ends) at around 12110.
1 August Dollar Index Elliott wave analysis: what next?
Price resumed the bullish correction where exactly we expected it to happen. We would likely see price advancing toward 12120-12125 before the bearish move continues. If price moves as expected, we would see it below 12170 and break below the wave (a)-(b)-(c). Price is expected to hit 11900 if this forecast plays out.
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