Elliott wave analysis of USDX for November 15, 2017

There are a lot of chances that the Dollar index has more upside if the current decline is wave A or wave 2. Today we are going to talk about this scenario and when it gets canceled. However our primary scenario remains the one where the entire upward corrective wave has been completed and we have already started the final leg down towards 88.

Blue line - support trend line

Red line - projection

The Dollar index has broken the trend line support and is heading towards cloud support at 93. This is also the area of the previous lesser degree fourth wave and high probability target for the pull back to end. Resistance is at 94.35. The downward move could very well be wave B or 2. A wave C or 3 should follow if this scenario is valid.

As we noted in previous posts, price was getting rejected at the 61.8% Fibonacci retracement. The entire correction could be over and we could already have started the final leg down. If however the correction is not over yet or even if the Dollar index has bottomed in September, there is a good chance this decline finds support soon and reverses upwards for a move towards 96-97. This is a valid scenario and we should keep as a very probable alternative.