Since my last update on DXY, the index has been in the negative territory. And analysts have been bearish on DXY when the index broke the key support of 101 last week. Economists alike have reckoned that the interest rate hike cycle is coming to an end or close to it when the key inflation data came in less than expected last week.
Looking at the chart, I believe the index is in a consolidation phase and will be heading higher when this consolidation is done. The index is now, or about to, on the 'c' wave path of an expanded flat as depicted in the chart. A 1.618 multiple for wave 'a' will bring the 'c' wave to 108. This price range is in the 50 to 61.8% retracement level of wave 'A".
Once hitting this target, the index will retreat back to back to the 100 region to complete the 'A"-'B"-'C" cycle, before heading higher.
Looking at the chart, I believe the index is in a consolidation phase and will be heading higher when this consolidation is done. The index is now, or about to, on the 'c' wave path of an expanded flat as depicted in the chart. A 1.618 multiple for wave 'a' will bring the 'c' wave to 108. This price range is in the 50 to 61.8% retracement level of wave 'A".
Once hitting this target, the index will retreat back to back to the 100 region to complete the 'A"-'B"-'C" cycle, before heading higher.