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JosephDaddyo
Dec 22, 2016 3:30 PM

DXY outlook Short

U.S. Dollar Currency IndexTVC

Description

will test 1989 high
Comments
kunsan
I agree on the general idea that DXY might be entering a rising wedge formation that could last one or two years. That looks absolutely correct. However I don't think your red lines are correct. In terms of price targets and patterns, consider the possibility that DXY is in a very large three wave ABC rally from the 71 low, with wave 'A' being the move upwards to 100 (in the form 'a' triangle 'b' 'c'), wave 'B' being the sideways consolidation between 90-100. If so, the recent move upwards from 92 to 103 is the first part (or part of the first part) of wave 'C'. That wave 'C' might indeed form a rising wedge as you suggest. However the target areas are more likely 108 (minimum being 0.618 of 'A') or 120 (being C=A). Hope this makes sense. Good work.
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