USDX: Another reason to be not so bullish

The market, as we see it in Elliotwave-Forecast, is as a whole. Consequently, we are always looking for instruments that provide us with an edge and provide us with hints about direction of the market. For us, correlations are a huge part of our forecast and we combine them with Sequences, Cycles and Elliott Wave. The $USDX is part of the market and trades with instruments within the dollar group but also relates to instruments outside the $USDX group. In this video, we explain how the $EURUSD showing five swings or waves from the all-time lows and showing seven swings from peak in 2008 which fit the basics Elliott Wave patterns or five followed by three. Also, Silver ending the 2011 cycle supports the idea of a not so bullish $USDX. In today’s video, we add another instrument to the multi market correlation i.e. $GBPNZD which trades the same cyclse and sequence as the $EURUSD, Silver, and $USDX. We also explain how we see the instrument taking the lows of 2013 is a bearish signal because it makes it 5 swings down from 2000 peak, this was the last significant peak in the $USDX and low in EURUSD. Next week, we have Federal Open Market Committee statement but path is already defined in the cycles. We believe that even though. $USDX has the potential to rally in shorter cycles, we view the rally as a selling opportunity for the next larger swing lower. We believe we have had enough clues to be not so bullish the dollar in the daily and weekly cycles and we prefer the selling of the instrument than the buying at this stage. For more information about our work we invite you to take the 14 days free trial at www.elliottwave-forecast.com

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