The U.S. Dollar has lost almost 13% of its value since it topped out at 102.99 in March, it has tumbled as the federal government carried out multiple fiscal rescue programs to buffer the economic damage from the coronavirus lockdown in the first half of the year.
The chart above allows us to put U.S. Dollar's entire decline since March 2020 high in the Elliott Wave perspective. The long-term downtrend which took the currency price from 102.99 to around 89.71 in nine months took the shape of a textbook impulse pattern. Its five waves are labeled i-ii-iii-iv-v.
US Dollar Bears Are Overstaying Their Welcome
What should worry the bears is that according to the Elliott Wave principle, a three-wave correction follows every impulse. Corrections usually erase all of the fifth wave’s gains. For U.S. Dollar, this means a rally to the wave (iv) resistance area near 94.78 can be expected once wave (v) is over.
If this analysis is correct, the U.S. dollar could be ready to come out of its funk and start rallying again.
What's your view on U.S Dollar Index? Let me know in the comment.
Thanks for reading!
Veejahbee.
The chart above allows us to put U.S. Dollar's entire decline since March 2020 high in the Elliott Wave perspective. The long-term downtrend which took the currency price from 102.99 to around 89.71 in nine months took the shape of a textbook impulse pattern. Its five waves are labeled i-ii-iii-iv-v.
US Dollar Bears Are Overstaying Their Welcome
What should worry the bears is that according to the Elliott Wave principle, a three-wave correction follows every impulse. Corrections usually erase all of the fifth wave’s gains. For U.S. Dollar, this means a rally to the wave (iv) resistance area near 94.78 can be expected once wave (v) is over.
If this analysis is correct, the U.S. dollar could be ready to come out of its funk and start rallying again.
What's your view on U.S Dollar Index? Let me know in the comment.
Thanks for reading!
Veejahbee.
