DXY CNH

The USD Index Cycle and the USDCNH

The Elliott Wave Perspective

If you are a subscriber of ForexAnalytix you already know that we are still expecting another leg up on USD Index to complete bullish cycle from 2011. We think that the USD index is now at some very interesting levels near 90.00, a strong support from where uptrend may resume. Well, some USD-based currency pairs will form tops or bottoms earlier than others, and become signals for upcoming turning points. We consider USDCNH to be one of them; it’s pair that has been in a nice uptrend since 2013; clearly defined in five waves followed by a three waves set-back to the area of a former wave four. We have seen a nice bounce from that region in the last three weeks which can prove to be important evidence for more upside. If that’s the case then USD Index may also experience equivalent bullish price action by the end of the year, especially if we also consider that the “corrective cycle” since 2015 may be nearly complete based on past two cycles that ended in 2011 and 2014.

USD/CNH Weekly Chart
USD/CNH Weekly Chart

 

USD/CNH-DXY Daily Chart
USD/CNH-DXY Daily Chart
USD/IDX Monthly Chart
USD/IDX Monthly Chart

This article was written by one or more of the following contributors: Blake Morrow, Nicola Duke, Grega Horvat, Steve Voulgaridis and Stelios Kontogoulas. They are all analysts at ForexAnalytix which provides macro & technical analysis for various financial instruments. Forex Analytix primary goal is to educate traders of all experience levels and to provide a wide range of tools which can help with their trading decisions.

Published by

Blake Morrow

Blake Morrow spent most of his professional career as the Chief Currency Strategist for Wizetrade group for 15 years, and then the Senior Currency Strategist for Ally Financial after the acquisition of Tradeking which owned the Wizetrade Group. Blake has over 20 years of trading experience and has been a co-owner of a Dallas based brokerage firm and LiquidTrader Technologies. Blake spent over 14 years, hosting a popular Forex and Trading online show, “The Morning EDGE” where he spent a majority of his day trading with and teaching other traders to navigate through the markets. Blake is a seasoned individual investor in equities and Forex. Blake is a husband, father and avid golf hacker. Proud Marine Infantryman 3rd Battalion 9th Marines 1990-1994.