Elliott wave analysis analysis of USDX for October 05, 2017

The Dollar index has broken out and below the bullish channel. The upside correction is most probably complete. However, in order to cancel any bullish wave count, price will need to overlap the high of wave A.

Red lines - bullish channel

The Dollar index remains in a bullish trend. Price made a reversal lower the last couple of sessions. Is it enough? Price so far has been making higher highs and higher lows. A move below 92.95 will cancel that and will give bears the upper hand. The above wave count is my preferred one. However in order for this wave count to be confirmed, we will need price to move past and below the high of wave A.

This way we will have canceled the possibility that the current pull back is wave 4 of the up trend. On a daily basis however, price remains inside the bearish channel. I expect price to get rejected at current levels and push to new lows. I believe the bounce off 91 is a wave 4 corrective wave and wave 5 down should follow.The material has been provided by InstaForex Company - www.instaforex.com