Wave analysis of USDX for November 20, 2017

The Dollar index has stopped at the 38% Fibonacci retracement support as we noted in our latest analysis. This is a good support are where we could at least see a trade-able bounce. The Dollar index could still make a new lower low towards 93 before the bounce, but overall we should not ignore the bullish alternative wave counts.

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Blue lines - bearish channel

The Dollar index has broken out of the bearish channel. Is is a first bullish sign for a possible bounce. Price is below the Ichimoku cloud. Resistance is at 94.50. The decline so far is corrective in three waves, as the rise from September lows can be seen as impulsive. This implies that another leg higher is expected to follow.

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The fact that price has stopped where it has, has increased the chances of another leg higher dramatically. The downward move and rejection at 95 could very well be wave B while we should now expect a wave C higher towards the 61.8% Fibonacci retracement or the Ichimoku cloud resistance. The target area would be 97-98. Bears should be very cautious.The material has been provided by InstaForex Company - www.instaforex.com