DXY...and there it goes to its ultimate target higher!

DXY finished its expected correction consolidation from our last posts @ around the 94.5 area and its moving higher again towards our long standing ideal targets of 97.7 with serious potential to reach the 99-100 area given the H&S structure (orange), current oversold conditions (Stoch RSI), Fib & Elliot wave targets (white) and retest of the broken downtrend (blue) We would look at singals at and around those targets to exit longs and to look for the resumption of the overall USD downtrend described in our 7-8yr cycle theory described in previous posts.

Comment:

...and there it is. DXY has reached our ideal target of 97.7 laid out months ago fueled by the Ukraine situation. Technicals starting to look a bit overbought now (not shown) but given the potential for escalation there is still potential to reach the 99-100 area discussed before where H&S and EW targets converge. Caution is needed as situation is volatile and would recomend reducing risk longs at current lvls.

Trade closed: target reached:

DXY has reached the 99-100 area that we laid out as potential ultimate target on this move, which is where the H&S, EW and Fib targets coincide. Technicals are not at extreme levels yet, opening the door for higher levels, but given that all our targets have been met and the uncertainty of the Ukraine situatione we are closing our USD$ longs and will wait for new signals.