#USDX Wave analysis for December 5, 2014
The Dollar index has made a solid draw back yesterday after the remarks by ECB president Mario Draghi. The continuing trend remains bullish. There is still a possibility that the index is framing a bearish wedge or in Elliott wave terms a closure crossways pattern to finish the upward move from 79.75.
The Dollar index stays over the Ichimoku cloud support. The upward move includes overlapping wave patterns. I accept this is a formation of an ending crossways pattern or technically consideration of a bearish wedge at the end of an upward move. The Dollar index may make one new higher high however; I think it is close to turning around the trend. Bulls should be extremely careful and a break below support at 87.50 will be a significant drive to the long-term bullish trend.
The weekly chart keeps on being bullish and confirms no worrying signals. Therefore, no reverse signs as per our weekly chart however, bulls need to be further careful at current levels because there is an increased chance of having a trend reversal as the rise from 79.75 is at its ending stages. Main support is at 87.75 point. If broken, this would be the initial reversal sign.