Dollar Index Big Map: Trend Is Your Friend This year, the dollar has been in the red all the way down — until it hit the strong support line of a multi-decade uptrend (white). From there, it bounced to the upside. So, what’s next?
I’d like to share with you a big map of the Dollar Index.
I assume that we are still within the large second leg ((Y)) of the ((WXY)) corrective structure (white).
Within this structure, we can see a smaller-degree (WXY) correction (blue).
Currently, the market is moving in the last leg C of the final upward move in blue wave (Y).
Many times, I’ve observed how beautifully these wave structures align with strong pivot points.
The ultimate target for wave ((Y)) is near the top of wave ((W)), around 121.
This level also matches the target where blue wave (Y) equals blue wave (X) — an amazing correlation!
There are two key confirmation levels marked on the map:
Bullish confirmation — above 110 (this would invalidate the bearish scenario).
Bearish confirmation — below 89 (this would invalidate the ((WXY)) structure).
