Dollar expected to continue lower to complete larger wave degree correction that should see a trend change later in the week.
The Dollar continued lower as our previous main hourly count expected. The Dollar reached the downwards target but then continued on much lower.
Hourly Count: Main
- Invalidation Point: 81.04
- Confirmation Point: -
- Downside Target: 79.98
Elliott Wave chart analysis for the USD Index for 7 September 2012. Please click on the charts below to enlarge.
Main Wave Count
Within wave 3 blue waves i and ii pink are seen as complete. Wave iii pink is expected to be subdividing into green degree with waves (i) and (ii) green complete. Within wave (iii) green we expect wave i orange is complete.
Downwards and sideways movement is expected within a combination correction for wave ii orange.
Movement below 78.10 would invalidate this wave count as wave ii orange may not move beyond the start of wave i orange.
This hourly count sees waves (A) and (B) aqua within wave Y purple of wave ii orange as complete.
Further downwards movement is expected within wave (C) aqua.
Within wave (C) aqua waves 1 and 2 red are complete and within wave 3 red waves i and ii plum are complete. Short term downwards movement should be seen to complete wave iii plum before short term sideways and upwards movement and then again downwards movement to complete wave 3 red.
At 79.98 wave 3 red would reach 2.618 the length of wave 1 red.
Once wave 3 red is complete then short term sideways and upwards movement is again expected before the final impulse lower to complete wave (C) aqua and likely the whole correction for wave ii orange.
At 79.00 wave (C) aqua would reach 1.618 the length of wave (A) aqua.
Movement above 81.04 would invalidate this wave count as wave iv plum may not move into the price territory of wave i plum.