#US$: Elliott Wave

Spun in log scale, the Gann grid is based on the initial 'A' wave in time and distance. Note the subsequent adherence to minor degree grid lines down to the blue dashed 25%. Pretty cool over all them years. Note also, the symmetry in the grid sqaure widths for waves A-C. I have marked out 'D' & 'E' with their own squares too, for timing. The world's markets seem to be playing out in diagonals, so no wonder the US$ appears to be playing the same formation. So, I got this as playing out the 'b' in 'c' of wave 'D', with that 'b' leg looking like a flat inside a zigzag, respectively. The momentum study suggests the count is valid, but maybe too early for the turn up - see previous (light blue) momentum study position at 'b' wave turns. Also, the MMA wave at this degree is still bearish, so anticipate lots of chopping over D-E to sort it out to the upside, but this could take years! If the 'a' wave rise in 'D' corresponded with the 2008/2009 crash, then the 'c' of 'D' is going to hurt too, but then the 'E' leg down would correspond with a possible rise again in the markets until its conclusion. What if the 'E leg is a thrusting ending diagonal. Good hobby this!!

On the daily chart, the large blue legends reflect the monthly chart. I am counting this as either red 'c' of blue 'b' done and we are already on our way up, or there is an expanding diagonal still to play out its 3rd, 4th and 5th waves. This latter count gives room for that monthly momentum study to mature to the downside, although I have to say the same study in this daily chart does look like it has already nested. Maybe a very deep wave 2 would achieve the same result in the top chart. In addition, the drop thus far in red 'c' of 'b' hit the 100% extension of red 'a' already and it was a very neat hit too. So don't know, but expect softening in the dollar whilst the MMA wave is bearish, until the top perimeter line of that possible ending diagonal is taken out. I also like the idea that red a-b took 2 grid squares of last year's high to low, and if the diagonal did play out, it would also likely be 2 squares for red b-c.

Readers will know that I am playing the same ending diagonal in reverse in the EURUSD, so I am obviously biased in interpretation. Makes for pretty pictures though.