FX.co ★ hickle.manuela | Comprehensive Analysis in Trading: Mastering Methodologies

On the currency market, the #USDX index, analyzed on the H4 chart, has reached a critical level of 99.05. Breaking through this level confirms our hypothesis that the preceding upward movement was a triple formation. Therefore, we can talk about the formation of a red triangle within corrective wave "B", significantly expanding the range of possible scenarios and complicating trading on most dollar instruments until the end of this month. However, commodity markets and cross currency markets currently appear much more predictable and attractive for trading.

The comprehensive multi-timeframe analysis conducted to form this conclusion includes the following tools: 1) Elliott Wave Theory (EWA): Used to determine the structure of price movements. 2) MACD Histogram: Applied to assess the strength of the impulse and identify reversal signals, as well as to confirm the wave level in the hierarchy of Wave Analysis notations. 3) Exponential Moving Averages (Smoothed) with periods of 55, 89, and 144: Used to determine the trend direction and key support and resistance levels, in addition to the intersection of MA (along with the MACD histogram) confirming the wave level in the hierarchy of Wave Analysis notations. Priority in the analysis is given considering the correlation with other related markets, where a strengthening of the US dollar is also forecasted, as well as the likelihood of technical and wave analysis pattern realizations.