03/24 - Fifth wave targets for DXY & EUR/USD

Both the DXY (US Dollar Index) and the EUR/USD have confirmed the fifth wave of an Elliot wave series that originates from November 2009. While 4-hour MACD divergence and the key 10-week MA initially stalled the greenback's weakness last week, it was the subsequent daily RSI wedge breakout that enabled dollar bulls to seize control.

One common method of determining a fifth wave target is to project the length of the first wave (or a proportion of that wave) within the series and project it from the start of the fifth wave. Beyond a cluster of DXY Fibonacci retracement level's near the 82 handle, the first fifth wave target lies at 1.3247 (a .618 proportion of the first wave). In both cases (DXY & EUR/USD), the equality target coincides with important levels at 83.714 & 1.2879, a combination of key Fibonacci retracement levels, Gann targets and swing pivots.