As the chart illustrates we are about to enter the 3rd wave of an impulse in the wave C of a corrective wave in the next few days.
However, our main trend is gonna turn downwards in the following month and keep on a downtrend.
Bear in mind that price changes will follow the rules of an impulse when they enter the 3rd wave.
Simple 12H analysis on the USD Weighted Index (not DXY)
Seems as though we are creating a 1-5 elliott wave, and reacting strongly to the drawn trendline.
I expect the market to form the final wave, completing the elliott pattern, and for the impulse to be exact same size as the first wave, which will then bring us to the marked zone, which is a very key weekly...
On the usd/eur setup, I see price has reached a minor resistance zone. Delving into the lower timeframe, I see price makes a minor ascending channel with HH's/HL's.
I am hoping price touches resistance zone and reaches first take profit.
A short position entered at 0.8475. A bearish divergence witnessed on the RSI.
Looking for the TP at the support level drawn, potential to drop it lower however. - 0.8334
SL is placed at a resistance level. - 0.8535
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