Elliott Wave 5.0 "Reboot"

Tuesday, February 2, 2016

US Dollar Daily Chart Elliott Wave Count Review

When I draw lines in parallel, then it becomes obvious that we have been in a sideways market for just about a year or so, depending from where you start counting from.  This has always been the case  as where you are counting from is one of the most important things to review on a constant basis. 

If this is part of a bigger zigzag top, then sooner or later the US dollar would have to take another nose dive. The US dollar will be one of the asset classes that reacts to the job reports and this could send the US dollar soaring and then crashing. The exact opposite can also happen so it is best to wait and see where the spikes end up at. 

The US dollar is on a small sideways trending pattern which suggests a diagonal 5th wave or a "B" wave top. Diagonal waves can make crazy spikes so if that happens and the USD crashes through the top line, then it could be a false upside breakout and then reverse and plunge.  A plunge without going to new highs can produce an "E" wave crash, so there are still many options to consider in the short term.