Volatility can again be seen today when traders will focus on FED Power and BoE Bailey speeches. Any CB divergence may offer interesting developments.
From an Elliott wave perspective, we should be aware of a potential turn down on DXY if we consider that wedge pattern on a daily can be coming to an end after recent three waves up in wave five as shown on 1h chart below. A drop put of a channel will likely bring in more weakness while EUR, CHF, GBP and JPY may recover.
USD Index 1h Elliott Wave Analysis
Swiss franc is trading south for the last few weeks after it stopped at the 78.6% Fib level where the market completed a corrective rally with three waves up. So it appears that the pair is now back in bearish play after a broken channel support which opens door for a third wave of decline back to 0.8923 when looking at the daily time frame.
USDCHF 4h Elliott Wave Analysis
