Has the DXY correction ended?
Updated
Good afternoon traders,
The DXY has seen a pick up over the past couple of months due to rising interest rates on US bond yields.
The US economy appears to be recovering from the Covid019 pandemic, however, the FED has suggested they will maintain record-low interest rates for the foreseeable future.
The Joe Biden administration, Jannet Yellen the Treasury Sec and FED Chair Jerome Powell are all set to continue the helicopter money which will result in currency devaluation.
Elliott wave theory suggests the market can move in an impulsive structure or corrective structure.
An impulsive structure is made up of 5 waves that are in the direction of the trend.
Corrective structures move against the overall trend but are only corrections.
The questions here is, is the current structure just a wave 4 on the larger degree? Meaning we are yet to see a final 5 wave decline to complete the trend (before an even larger correction higher).
The current formations look corrective in nature, made up of 3 waves rather than an impulsive 5 wave structure. This tells me we are potentially heading lower on the USD.
Let us know your thoughts below!
The DXY has seen a pick up over the past couple of months due to rising interest rates on US bond yields.
The US economy appears to be recovering from the Covid019 pandemic, however, the FED has suggested they will maintain record-low interest rates for the foreseeable future.
The Joe Biden administration, Jannet Yellen the Treasury Sec and FED Chair Jerome Powell are all set to continue the helicopter money which will result in currency devaluation.
Elliott wave theory suggests the market can move in an impulsive structure or corrective structure.
An impulsive structure is made up of 5 waves that are in the direction of the trend.
Corrective structures move against the overall trend but are only corrections.
The questions here is, is the current structure just a wave 4 on the larger degree? Meaning we are yet to see a final 5 wave decline to complete the trend (before an even larger correction higher).
The current formations look corrective in nature, made up of 3 waves rather than an impulsive 5 wave structure. This tells me we are potentially heading lower on the USD.
Let us know your thoughts below!
Trade closed: target reached
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