Yesterday we gave you our insight on the exchange rate between the euro and USD, saying that EURUSD parity is still possible. But the European currency weights nearly 60% of the USD index. So, if a pattern suggests EURUSD should fall, there has to be a similar one in the opposite direction on the chart of the USD index.
The correction we saw in EURUSD was a flat. It seems the USD index is about to complete the exact same pattern. Three waves for A, three waves for B and five waves for C. According to the Elliott Wave Principle, once wave 5 of C finds its bottom, a significant recovery is likely to begin. A recovery, which has the potential to go higher than the previous major top. In other words, the bulls might be getting ready for 101 and above.
