FXS: Dollar to see further sideways movement over the next week,
The Dollar failed to reach the upwards target on the main hourly wave count and instead moved sideways over the last week.
We provide the updated daily count as well as a main and alternate hourly count.
Elliott Wave chart analysis for the USD Index for 17 August 2012. Please click on the charts below to enlarge.
Within wave 3 blue waves i and ii pink are seen as complete. Wave iii pink is expected to be subdividing into green degree with waves (i) through (iii) green complete.
The Dollar is now expected to move sideways and lower within a fourth wave combination correction.
Invalidation to the downside is with movement below 81.78 as wave (iv) green may not move into the price territory of wave (i) green.
This main hourly wave count expects wave (iv) green is unfolding as a combination correction and that waves w and x orange are complete.
There is no adequate Fibonacci ratio within wave x orange for wave C purple with wave A purple.
A three wave structure to the downside is now expected to complete wave y orange.
I expect wave y orange is to unfold as a flat correction with waves (A) and (B) aqua within wave A purple of wave y orange complete. Short term downwards movement is expected to complete wave (C) aqua and wave A purple before upwards movement within wave B purple and finally downwards movement again within wave C purple to complete the whole correction for wave y orange and wave (iv) green.
Movement below 82.20 would confirm this wave count as the alternate hourly would then be invalidated.
At 81.94 wave (C) aqua would reach equality with wave (A) aqua.
Short term invalidation is with movement above 82.50 as no second wave correction within wave (C) aqua may move beyond the start of the first wave.
This alternate hourly wave count expects wave C purple within wave x orange is incomplete and extending higher. It sees wave (1) aqua within wave C purple as complete and possibly wave (2) aqua as well.
Upwards movement is expected to complete a five wave impulse for wave C purple.
Movement above 82.50 would provide initial confirmation as the main hourly would then be invalidated.
Final confirmation is only with movement above 82.88 as we would then be unable to provide a valid wave count based on the main hourly count.
At 83.42 wave (3) aqua would reach 1.618 the length of wave (1) aqua.
Movement below 82.20 would invalidate this wave count as wave (2) aqua may not move beyond the start of wave (1) aqua within wave C purple.
