USD Index look for more upside
|Non-farm payroll took the world by storm, indicating the US economy added more jobs than forecast, giving the dollar a much-needed boost after weeks of weakness across the board.
The chart below shows the USD Index has completed a cycle degree wave iii and we can start looking for a corrective move higher on the dollar in wave iv. Since the low on 06 August 2020, we have pushed higher in an impulsive manner to start the corrective move higher on a larger degree.
You can count 5 waves up on the lower time frames with a small correction needed before we continue higher.
The higher the correction the better risk-reward ratio we will have for selling the USD Index. The pattern forming could be a zigzag, a flat, expanded flat or triangle. Keep the risk at a minimum in corrections as we wait for the larger move.
Key News events to watch out for this week: Wednesday 12 August 2020
Consumer Price Index month over month and Core CPI m/m. Friday 14 August 2020 Core Retail Sales month over month and Retail Sales m/m. Keep aneye out for better than expected numbers.
Res: 94.391; 95.583; 96.539
Sup: 93.085; 92.954; 92.735
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