Consolidatory price action in the FXCM USDOLLAR (CFD) is still ongoing with neither the Bulls nor the Bears making any headway. Looking at the structure of this consolidation since the start of the year we cannot rule out a final low in the USD.
Price has seemingly traced out a contracting triangle pattern, which, in Elliott wave terms can be labelled as an A-B-C-D-E structure. This type of structure usually occurs in the wave 4 (in our case) or Wave B position. Keep this in mind as price action unfolds but it doesn’t change our medium-term Bullish outlook for the USD.
If the contracting triangle is near completion and the USD begins a downward trajectory, then we would recommend staying with Commodity FX longs vs the USD.
1. FXCM USDOLLAR (CFD) – 4hr Chart: We cannot exclude a final push down in the USD!