View: USD INDEX: Follow Up of the Short Term EWP | The wave trading

It is obvious that the weekly chart shows an unwelcome prospect for the USD Index not only because price could be unfolding a bearish Head & Shoulder but above all because eventually the July/September 3-wave down leg will most likely result in another similar down leg with a potential target in the 76 area.

Given the internal structure of the down leg from the November 16 lower high, which is clearly corrective, it seems reasonable to consider the November´s peak as a wave (X), hence price would be now involved in unfolding the wave (A) of the second Zig Zag from the July top.

Regarding the pattern form November 16 peak, I am working with either a Double Zig Zag (Black count) or a Zag assuming that price will unfold an Ending Diagonal wave (C).

Either way the current overlapping rebound looks clearly a counter trend move that should be capped below 80.225