Elliott Wave Analysis of the US Dollar Index ($DX) by Sid from ElliottWavePredictions.com. Click on the chart twice to enlarge.

Here is my main wave count for the US Dollar Index ($DX). As expected in my last US$ post on April 4, choppy, corrective downward movement continued in the Dollar, but appears to have ended May 1, and a significant trend change to the upside appears most likely to have begun. On intraday charts, a small-degree 5-wave impulse to the upside from the May 1 low is clearly visible. Also, a complete WXY correction (from Jan 13 thru May 1) appears to count as complete, with pink wave c within blue wave Y forming a ending contracting diagonal, which has been almost completely retraced. Upward movement from May 1 is certainly impulsive (aggressive) in character, supporting my main expectation that a bullish wave 3 (black-intermediate) to the upside has just begun. Invalidation and confirmation points are shown on the chart.

If this wave count is correct, the implications are quite significant, as it will be very difficult for equities and commodities to continue to rally further when being priced in increasingly more expensive dollars. My wave counts in virtually every world stock market, commodity, and currency are in alignment with this wave count, with a trend change either having just started, or due to commence shortly.

For complete information regarding my Elliott Wave counts and price targets for many of the world’s major stock markets, commodities and currencies, please join me for my “live” weekend webinar. All enrollees will receive access to a recording of the webinar immediately afterwards, whether in attendance “live” or not. Here’s more information, including how to enroll, featuring a new pricing option that allows annual subscribers to receive access to all of my weekly “Sid’s Current Wave Counts” webinars at a substantial discount, if not completely FREE (after rebates from my broker, TradeStation Securities).

Sid
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