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Elliott Wave Financial Price Forecasting

US Dollar Index – Do Fibonacci Price Measurements Really Work?

by WaveTrack International| March 4, 2016 | 4 Comments

Sometimes, markets unfold in an intricate way that appears incomprehensible to fundamental or orthodox technical analysts. It is in these times when Elliott Wave practitioners can gain an insight into the value of fib-price-ratio analysis.

US Dollar Index - EW-Compass Forecast 13th January 2016 -

US Dollar Index – EW-Compass Forecast 13th January 2016 –

In mid-January, we proposed a very delicate pattern structure for the US$ index – an ending contracting-diagonal that began from the Aug.’15 low and was forecast to continue during the next months. Of special importance was the December decline from 100.51 to 97.19 that was seen as wave [a] of the larger 2nd wave. Basis fib-price-ratio measurements, we projected an ultimate low for the 2nd wave towards 95.20 – this was derived from a fib. 61.8% extension of the initial decline to 97.19, a standard measurement for zig zag sequences.

The actual outcome, as can be seen a month later, is quite amazing! The US$ index declined to a recorded low of 95.23 and was immediately rejected!

US Dollar Index - Result! 19th February 2016

US Dollar Index – Result! 19th February 2016

This testifies to the value of fib-price-ratio measurements that, correctly applied, can sharpen the awareness in terms of pattern/price-convergences. Only too often we see that patterns terminate at important fib-price-ratio support/resistance-levels. This can be an invaluable clue for someone trying to figure out the structure of a pattern.

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Category: Currencies, Elliott Wave, Euro / US$, fib-price-ratio, Financial Forecasting, forex, FX, trading, US$ Index, USD, video, WaveTrack International

Comments

4 Responses to “US Dollar Index – Do Fibonacci Price Measurements Really Work?”

  1. ben watson
    March 15th, 2016 @ 2:41 pm

    i must say the analysis is very helpful, indeed wave analysis and Fibonacci help in determining good levels for the dollar index combined with the fundamentals and other technical given one can analysis the movement in dollar index

  2. Wavetrack International
    March 15th, 2016 @ 3:35 pm

    Thank you for your comment. We are very pleased you find this useful. If you are especially interested in Fibonacci Price Ratios we can recommend these articles – all by Peter Goodburn who created his own approach in using these ratios…
    http://www.wavetrack.com/newsletter/elliott-wave-outlook-s-p-and-gold.html
    http://www.wavetrack.com/newsletter/us-10yr-t-notes-the-beauty-and-harmony-of-pattern-and-ratio.html
    Wishing you a great day and lots of success with these ratios

  3. James Hyerczyk
    April 11th, 2016 @ 10:05 pm

    What does “work” mean?

  4. Wavetrack International
    April 12th, 2016 @ 8:05 am

    ‘work’ here means simply if these measurements ‘work out’ or ‘succeed’ in their effectiveness to support accurate forecasting. Hope this clarifies it. Have a great day.

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WaveTrack International is a financial price forecasting company dedicated to the Elliott Wave principle and work of the R.N. Elliott. Clients include Investment Banks, Pension Funds, Total/Absolute-Return/Hedge Funds, Sovereign Wealth Funds, Corporate and Market-Making/Trading institutions and informed individuals -- & just about anyone who is affected by directional price change.

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