US Dollar Index Update

By: TheWaveTrading | Wed, Aug 29, 2012
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On June 27 and on August 22, I discussed a potential large ending Diagonal "project" for the USD Index.

Today, given the fact that the corrective down leg off the July 24 high, which in my opinion is tracing a Double Zig Zag, it is most likely not over yet.

Therefore more down side should be expected.

The lack of a terminal pattern is jeopardizing the idea that the down leg off the July 24 high is the wave (IV) of the Ending Diagonal project.

Therefore I am now analyzing other options.

Regarding the short term EWP below I have a potential count of the Double Zig Zag that could have an extension target at 80.60.

Recall that we have the 200 d MA = 80.81.

US Dollar Index
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If this Double Zig Zag pans out then I will consider as a viable option a Triple Zig Off the May 4 low, in which case now price would be involved in the wave (X) which once it is in place will open the door to the third and last Zig Zag up.

US Dollar Index Triple Zig Zag Project
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Author: TheWaveTrading


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