Bullish Elliott Wave Pattern Pulls US Dollar Index to 3 Month High

US Dollar Index advances in a bullish Elliott Wave sequence as large speculators are the most net short in four years.

US Dollar Index Elliott Wave Analysis

DXY has quietly been making gains since early April. Using the Elliott Wave principle, it appears we are now in a third wave impulse higher.

The Elliott Wave count we are following is that DXY is in the beginning stages of an extended third wave. We anticipate that this wave will carry higher up to at least 93 over the next several weeks. This aligns with our previous forecast of the US Dollar staging its largest rally since January 2017. Ultimately, this rally may carry back towards the 95 zone before finding meaningful resistance.

US Dollar Index chart with Elliott Wave labels providing a forecast.

Risk to the near term bullish scenario can be set at 89.23. So long as DXY is above 89.23, we are anticipating prices to carry higher towards 93 and possibly higher.

DXY Elliott Wave forecast on a shorter time framed chart.

In viewing the COT report, large speculators are the most net short

Article source: https://www.dailyfx.com/forex/technical/elliott_wave/us_dollar_index/2018/04/24/bullish-pattern-to-93.html?DFXfeeds=forex:technical:elliott_wave:us_dollar_index