Dollar Index – Weekly Review

CANDLES :

The Dollar made a big move this week. It formed a bottom on the daily and 2D frames and made bullish statements on the weekly and 8D frames. If the momentum continues and the weekly reversal confirms next week, this could be a serious, possibly a long term bottom. The index is bullish short and mid term.

ELLIOTT WAVES

There are no changes to the long-term targets for the Dollar. The extended wave 4 is either complete or very close to finishing. The Dollar bounced off the intersection of two major long-term channels, which could serve as a strong support zone in the weeks and months ahead.

Road Map

The wave upward has likely been corrective so far, and it appears that one more lower low could still be in the cards. However, with certain assumptions, this wave could also be viewed as a leading diagonal—potentially marking the start of a much larger impulse upward. Next week will likely be pivotal for clarifying which scenario is unfolding.

SUMMARY

In the quarterly report, I discussed how the technicals were getting ready to flip the trend—and it appears the tide has indeed started to turn, though we still need stronger confirmation on at least the weekly frame. For now, the index remains bullish in the short term.

Looking at the broader picture, the long-term trends on the quarterly and larger frames still favor the bulls. If that outlook is going to shift in a meaningful way, the next key signal will likely emerge in September.

Happy Trading!