Hello traders! Today we will talk about US Dollar - DXY - USD Index.
DXY was in a big sideways consolidation since March, ideally within a bearish triangle in wave B. Currently, we can see it finally breaking into new lows for wave C that can stop in the 97.50 - 96.50 support zone around important 61,8% - 78,6% Fibonacci retracement and from where we may see a bullish reversal at least in three waves, maybe even back to 103 highs, but to confirm our view, we need to see a bounce and recovery back above 100 region.
What we want to point out is that if you are familiar with Elliott Waves, then you know that triangles cannot occur in wave 2, so it must be a B wave, followed by the final wave C decline and then the whole structure looks corrective within uptrend.
We just want you to be careful at this stage, so don't fall in love with bears just yet, because even stocks can be trading at extreme levels and with a potential sell-off, USD Dollar may be a safe-heaven again.
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Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
Comment
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DXYUSDINDEX came in the projected support zone! Time for a bullish turn?! #USD #US #Dollar #Elliottwave
other gurus I follow aren't seeing this kind of strength, all the gold bulls are coming out of the woodwork saying we will see 2500 xau before year end. dollar bearish.
AristotelCostel
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@TomPower, Gold has nice divergences. It seems to be in "all aboard" state.
MaghanSmerick
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Amazing work! Thank you for your time...
JulieAdams
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thanks
Lylegernert
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Good job
Miketinkle
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Great work
Arielwillson
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Keep posting
kennypilanski
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well done
AristotelCostel
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The blue A-B-C is obvious. I would expect to see 95 before long, but long to where? 105 :D and than back to 97 or long for good?
ew-forecast
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@AristotelCostel, thank your for your comment. Well, we believe that January 2017 highs will be taken out, but not sure how far. Generally speaking, we may see 105 yes, maybe even 106 - 107 area and this would be a potential top formation. Have a nice weekend!