DXY has been following our script for a few months and has reached our minimum target (96.1) for this move. Some indicators are starting to show overbought conditions (TD Sequential, Stoch and RSI) so we are likely to see at least some consolidation/correction of the lastest move. However, our preferred view is that after some consolidation, this move higher still has legs and could reach our ideal target (97.7) or to the inverse H&S potential target (100). Once completed, we would be ready to continue to move lower into late 2023 as our 7-8 yr cycle of USD strenght/weakness indicates.
Comment:
After reaching our minimum target, DXY reached a high of 96.9 and has been correcting/consolidating since. There is still a chance of higher levels to our ideal target of 97.7, but all eyes on the 95.2 and 94.1 lvls for this correction to end if there is going to be a move higher. There is still time for it, but the longer it takes, the overall secular trend lower will take hold into 2023/24.
