Long term DXY chart for perspective on what is possibly in the works.
I believe this is an accurately drawn channel based on fib conformation. Are we about to embark on a trip to new Dollar highs? As you can see we've recently bounced off the .62 channel retracement which nicely coincides with the channel median line. At the very least I think we are now poised to move up in a corrective pattern. From an Elliot Wave perspective I think a new high is in order.
We'll have to monitor the shape of the near term price activity for further clues.
Shorter term chart showing my wave count off the Sept '22 highs.
You know, I agree that it will grow. But this wave structure looks contrived and a stretch. It is some kind of different structure. That's why I don't like looking for structures.
oliverrathbun
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@averkie_skila, You are correct...it is 100% contrived :) The eventual out come will not likely look exactly like this. Point being...a new high to complete the Elliot sequence will unfold. When you look at past large advances in the DXY they never end in a single spike. Wave 4's always seem to be deep which gives the appearance of multiple peaks at the end of the move. We have yet to have that after the steep drop in the current sequence. Look at the motive waves in this chart...the circled areas are the terminal advance. See how deep wave 4's result in a sawtooth appearance? Also.... see my publication on the Euro. I'm expecting a new low in that market which would coincide with a new high in the dxy.
averkie_skila
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@oliverrathbun, The level assault is underway right now. We have two charming pin bar candles and there is dynamic movement support.
oliverrathbun
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@averkie_skila, I'm expecting pretty stiff resistance around the 104 area in the near term.
That's why I don't like looking for structures.