DXY Dollar index W-pattern melt-up may reach 113-120 after a w4
DXY seems to be making sort of a W-pattern with double bottoms at 89 & double tops at 103. Last week it reached 108 almost touching the red upper downchannel (started from the 2002 120 levels) whose median was tested at 89. Dxy retraced & is resting at 107, the 1.272 Fib retracement of the 103 to 89 range if last week is a bulltrap (false BO from my yellow box), then DXY will break 103 & retest my green zone at the 100-97 range completing a wave 4 of 5 of III.
The BULLISH CASE: DXY may just continue rising with rate hikes. & reach 112-113 zone near the FIB 1.618. Before doing a wave 4 correction. This will also be the zone where the upper blue upchannel will
Intersect the 2014 trendline. After a wave 4, the final wave 5 of 5 of V may reach 120, the FIB 2.272 level
which also happens to be the tops of 5Jul2001 & 28 Jan2002.
Note: a dollar correction or consolidation will be good for emerging markets plus gold & commodities or even BTC which is prized in dollars.. A fast rising dollar will put pressure on future earnings of most high capped growth stocks whose earnings mostly come from outside the US.
Not trading advice
The BULLISH CASE: DXY may just continue rising with rate hikes. & reach 112-113 zone near the FIB 1.618. Before doing a wave 4 correction. This will also be the zone where the upper blue upchannel will
Intersect the 2014 trendline. After a wave 4, the final wave 5 of 5 of V may reach 120, the FIB 2.272 level
which also happens to be the tops of 5Jul2001 & 28 Jan2002.
Note: a dollar correction or consolidation will be good for emerging markets plus gold & commodities or even BTC which is prized in dollars.. A fast rising dollar will put pressure on future earnings of most high capped growth stocks whose earnings mostly come from outside the US.
Not trading advice