DXY - Dollar comeback and stock market crash! (prepare for it)
- The DXY index is currently sitting on the major support, and at this point, I think it's a good idea to speculate on a bounce from the support. As you can see, we have just retested the trendline on the monthly chart and retested wave (3) + wave 1.
- From the Elliott Wave perspective, we are missing a final impulse wave upwards to complete this bullish cycle on the DXY index: 2008 - 2023(2024?). Use your Elliott Wave count to compare with my analysis.
- The final wave 5 should end right above the previous wave 3 because of the wave 2 deep retracement. I do not expect any brutal extended wave 5 to the moon.
- After we reach my target (around 116), the ascending parallel channel will breakdown and the dollar will go down. I do not trade forex or stocks, because my specialization is only in the crypto market, but I am not only a trader; I am also an analyst, and I enjoy doing analyses for all kinds of markets. For maximum performance, it's best to focus only on 1 area, such as only on crypto, only on stocks, only on forex, only on commodities, and so on. The market behavior absolutely differs, and you have to use different tools and strategies. A strategy that is profitable on crypto gets totally REKT on forex. People who say that his strategy or trading system works on all markets are either scamming you or lying to you.
- As I said, DXY is sitting on the major support on the monthly chart, and usually you want to long supports and short resistances. In this case, we want to long the support.
- If DXY drops below 99, then it's over, and this channel is going to break down. Everything indicates that the recession is pretty much inevitable. And when the Fed pivots, a market crash is almost guaranteed.
- Now the question is, when will we rise on the DXY? We could start consolidating at these levels before an uptrend, or we can start an uptrend very soon. This is an analysis of the monthly chart, so it could take another few months!
- Q2 2023 could be still bullish for the crypto market!
- This analysis is not a trade setup; there is no stop-loss, entry point, profit target, expected duration of the trade, risk-to-reward ratio, or timing. I post trade setups privately.
- Thank you, and for more ideas, hit "Like" and "Follow"!
