FX.co ★ bryana.reichert | U.S. Dollar Index (USDX) in Forex Trading

At the lower wave level of the M15 time frame of the currency market USDX index, a multi-timeframe comprehensive analysis indicates a high probability of the scenario development, in which overcoming the key level of 100.696 will lead to the formation of a local descending corrective wave of the fourth order . This wave is likely to take an irregular form or form a "horizontal triangle". If the level of 100.696 is not surpassed, there is a low-probability alternative scenario of an ascending movement development within the framework of the next local sequence of first and second waves. In this scenario, the first "entry" wave formed an "initial diagonal triangle", marked by red lines.

Analysis methodology: To form this forecast, a comprehensive multi-timeframe analysis was conducted, including the following tools: Elliott Wave Theory (EWA): Allows to determine the structure of price movements and their current phases. MACD Histogram: Used to assess the strength of the impulse, detect potential reversal signals, and confirm wave levels within the overall hierarchy of Wave Analysis. Exponential Moving Averages (Smoothed) with periods of 55, 89, and 144: Help determine the trend direction and key support and resistance levels. The intersection of these moving averages, along with the MACD histogram readings, serves as additional confirmation of wave levels. Additional factors: Special attention was paid to the correlation with other related markets. Forecasts on the strengthening or weakening of the US dollar were analyzed, as well as the likelihood of implementing technical and wave analysis patterns in these markets.