US Dollar Index Update
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.
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.