It's been nearly ten months since I published this long-term count for de US Dollar Index, and the 81,50 weekly gap had contained every attempt the price made to surpass that level. It took another test at the 79.00 support zone, but finally the price is doing what was supposed to do, and after crushing above the gap, has significantly accelerated its upside pace. For trading, obviously, the timing has been a huge inconvenience, but the analysis is being proved right. This is the current weekly chart.
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Now the former 81.50 resistance should become a huge support, and the index should finally unfold the expected strong upside wave shown on the chart. It should be easy to reach the 2013 tops, and then surpass them. Recently even Goldman Sachs has spoken out about EUR-USD parity in 2017. I do not disagree.
Estimo que todavía debería entretenerse algo más en esta zona 9500-10500 antes de formar un techo definitivo. La zona de soporte parece clara 9550-9225, dejando aparte violaciones puntuales por volatilidad.
In previous posts I have already published my preferred long term count for this index. Now it is time to rewiew it and take a look at the last weekly candles it has set.
As you can see in the chart below, I am expecting a second upwards leg to complete an abc pattern from the 2011 lows.
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The price has been lately contained by the resistance level set with the last weekly gap still open at the 81.40 mark, which strongly rejected it two weeks ago with a powerful black candle. But this week it has developed an engulfing bullish candle that has left it knocking at the door of that level again. I believe that the resistance will be broken sooner than later, and that will be the confirming signal of a presumably strong 3rd wave of the expected upward leg.