On the daily dollar index chart, a powerful uptrend is expected to continue, as we are looking for a blue wave (3) that has been in progress since the 76.60 lows were hit. Third waves are usually the most powerful waves of a five-wave sequence with an extended structure. A red sub-wave 2) could be developing now, and should find its lows somewhere above the 78.50 region.

Traders should also keep an eye on a possible A-B-C count from these lows, which could be a corrective pattern that may lead lower. However, this is only an alternative scenario, which can become a primary count if the 76.60 lows are taken out at any time.

TheLFB Charting: Dollar Index Daily view
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