Dollar Breaks The Wedge Support As SP500 Eyeing More Upside

Dec 2, 2025

Hey guy, hope everyone is doing well.

As you know, we have seen some minor pullback on stocks yesterday as JPY come up a bit, after some hawkish remarks from BOJ Ueda. And at the same time cryptocurrencies also experienced a pretty sharp sell-off. But I believe these are all just temporary flows at the start of a new week and month. Position adjustments will still happen, and possibly after some pause on stocks we will resume higher, meaning that the dollar could stay in this weak mode, especially since the DXY ame out of a wedge pattern and now signals more downside. In such case, this previously broken trendline could be retested as a resistance around 99.65–99.85, tomorrow or in the second half of this week I would expect more dollar weakness.

GH

Dec 2, 2025

Note

SP500 made a nice and clean five-wave impulse from the lows, which confirms a bullish reversal, so more upside is expected, but ideally after an intraday corrective ABC pause, where wave C can retest 6800 - 6790 support area before the uptrend resumes. Second, deeper support would be at 6730 - 6680 area.