USD is still weak against the majors, but USD index is now at important support near 110.60 from where a bounce can be seen in the next few sessions. As such, we still assume that this is just a correction within USD strength which may resume in the next few days. With that been said, we are still tracking our ending diagonals very closely; both shown on EURUSD and USDJPY, but they may not be done yet, as we do not have enough confirming price action at this stage. EURUSD needs a broken support line, while USDJPY must pass 114.30 level.
USD Index, 4H
EURUSD, 1H
USDJPY, 1H
The ending diagonal is a special type of motive wave that occurs primarily in the wave 5 position when price has moved too far and too fast. Some ending diagonal triangles appear in the C wave of an ABC correction. In all cases, the ending diagonal terminates the move of larger patterns. They consist out of five waves, with each having three more sub-waves.
An ending diagonal: