As can be seen on the daily chart we have had a nice five wave rally down from 89.62 ending wave c of [B] in a flat correction. That means we will soon see a the powerfull wave [C] take off. Wave C do have wave 3 personalities, so this is not the wave to mess around with.
I have drawn a Andews Pictfork defining black circle wave 5, look how the center (median) and upper lines define the entire black circle wave 5 down move. If my count is correct we might need one more stabe at the center line close to 74.
Looking at the internal relations between the waves:
Black cirkle wave 5 will equal black circle wave 1 at 74.34
Black cirkle wave 5 will be 0.618 time the lenght of black circle waves 1-3 at 74,37
The low on November 26 was 74.17 so this target has been fulfilled.
As can be seen the move down since November 3 from 76.82 do look like and ending diagonal missing the final part down in wave V. Idealy it should move below 74.17, but not below 73.88 as wave iii may not be the shortest. So even at the current level at 74.53 a long USD-Index position will make a low risk position, as the stop can be placed just below 73.88 makeing it a less than 1 percent risk trade.
On the 5 min. chart I have drawn in a lower pink line which marks the absoult bottom at 73.88, which must not be broken or my count is wrong. I have also drawn a upper pink line at 75.19 (low of wave (i) as any break above here will confirm that the bottom is in place.
During the next couple of hours we could see a move up to the 74.90 - 75.05 area before the last leg lower closer to 74.00, but we are close to a bottom and don't need much more before the bottom is in place.
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