This is one of those "too easy" setups.
Dollar reversed from bullish to bearish trend in January of 2017. Created a lower low on A-Leg. Retracing to the 0.618 of the fall for B-Leg. Now preparing for next big leg down, with a 20% decline.
The scary thing about this, is I do not see that actually being the stopping point for the dollar. That's just the technical location of it's fall. It is likely to do a little bounce there, but, resume the downtrend WAY deeper after that.
Timing is very difficult for this. It could take anywhere from a couple of months to several years to do this 20% decline.
Be mindful that a bull trap could be set, sending DXY up to around 99, the 70.2% retrace, before the fall occurs. Otherwise, the 61.8% retrace is totally acceptable as completing this wave.
Dollar reversed from bullish to bearish trend in January of 2017. Created a lower low on A-Leg. Retracing to the 0.618 of the fall for B-Leg. Now preparing for next big leg down, with a 20% decline.
The scary thing about this, is I do not see that actually being the stopping point for the dollar. That's just the technical location of it's fall. It is likely to do a little bounce there, but, resume the downtrend WAY deeper after that.
Timing is very difficult for this. It could take anywhere from a couple of months to several years to do this 20% decline.
Be mindful that a bull trap could be set, sending DXY up to around 99, the 70.2% retrace, before the fall occurs. Otherwise, the 61.8% retrace is totally acceptable as completing this wave.
Comment:
Looks like we might be taking that stab at 99 pretty soon. This is where I perceive the top to be, somewhere in the 99.xx. Then downward we go.
Comment:
DXY reached 98.69 today. As mentioned in this post on December 27th, 2018, 99.2 collapses it.
Trade active:
99.3 - This is the end.
Comment:
The narrative is unfolding. Here we sit right at the .702, right where this prediction was made, over 9 months ago. And what has been going on? Overnight Repo liquidity injections at the tune of $100 Billion per night from the Fed, which started on September 16th. Free money printing to banks. Right at the .702. You think that's ironic? Money printing exactly at the .702? No. It's not.
Comment:
Quantitative Easing, branded as "Not QE", was announced by the fed yesterday. At exactly where it should on the chart. Are you not entertained? Is your mind blown? Do you realize the world you live in? Pretty scary, isn't it?