USD Index on the move

A reversal lower from 1.3533 was quite sharp last week, but still not in five waves, so calling an end to a recovery at recent high can be a little too early, but short-term patterns suggest that a current minor move around 1.3315 is wave four of wave one. So, if we are correct that the market will see another short-term weakness to complete Wave 1), the real focus should be on Wave 2) later this week.

USD/CAD, 4-hour

USD Index
On the 4-hour chart of USD Index we see price trading within a higher degree three wave decline and a current bearish breakdown may be part of Wave C. Now, we see price trading within the strongest and steepest sub-wave 3). If we are on the right track, then even more weakness may follow within the mentioned wave and ideally towards the 98.00 regions.

USD Index, 4-hour