Cable Bullish to 1.7000-1.7100 area
Daily chart trend: Long. Main price points: 1.5982 and 1.6743 Looking for: Move up, near to 1.7000-1.7100 area. Cable is extremely bullish, as the prices are breaking through all resistance areas that were made in the past few weeks, and as such, we are monitoring a near-term bullish wave count with black wave V) progress. The target area of this wave V) is shown around the 1.7100 area, if the break through the 50% Fibonacci level appears.Around that top, we will be looking for a completed five wave pattern, with new near-term or long-term down-trend moves will be expected. This may be the top area of a blue wave 4) (weekly chart), from where the market should go much lower, or it may also be just a temporary top of a red wave III of a bullish impulse count.
4 Hour chart trend: Mixed. Main price points: 1.5982, and 1.6743. Looking for: Triangle
On the four hour cable chart we can see that market is already breaking through the 1.6743 resistance level, which should be key for move at least into the 1.6915 zone. This is our minimum blue wave iii objective of a re-worked wave count. We are looking for an impulse wave count, as a black wave IV) looks completed with a flat structure at 1.5982 low; so wave V) should be in progress.
$ Index Down to 74
Weekly chart trend: Short. Main price points: 78.33. Looking for: Wave B pattern.
On the weekly dollar index chart, we are monitoring the second wave count, presented in the past week, after prices broke through the 78.33 support area. Now we are looking for a huge flat correction in a blue wave B with red wave five in progress of an extended black C). The bottom of wave C) may be found somewhere around the 74.00 area.
Daily chart trend: Short. Main price points: 80.89, and 74. Looking for: Wave V
The dollar index has broken through 78.33 support during recent trading sessions, which confirms a lower, red wave V leg. The target of this wave V is shown around the 74 area, as we are targeting on the same distance of points in wave V as in wave I. The wave count will be valid, so long as the 80.89, wave IV top holds.
4 Hour chart trend: Short. Main price points: 79.66. Looking for: Move lower
The dollar index is trading powerfully lower after a completed blue wave II correction, at the 79.66 area. Wave II is now completely done as the market broke through the wave I lows, which should bring the wave III in play. If we are correct, then this wave III should be large, with an extended structure, as the third waves are usually the most powerful of a five wave pattern. The 79.66 top needs to hold for a valid wave count.
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