Dollar Index – Urgent Update
The Fed’s rate announcement jolted the Dollar, and the candles fired off signals we can’t ignore.
If you skipped today’s prints, you’ll want to catch up. The setup now hinges on how price behaves around the key mid-body levels and recent highs/lows—confirmation here will define the path.
Let’s break down the signals, frame by frame, and map the next targets before the crowd realizes what just happened.
CANDLES :
Earlier today on Discord, I flagged a potential strong bullish combo and shared the cut-off line. The Dollar delivered: it printed a marginal new low and formed a clear Piercing Line/Hammer—fully capable of marking a major bottom. The sharp flush-and-recovery did not affect the previously discussed weekly MACD cross, which continues to widen and supports bullish momentum.
As noted in prior weekly analyses: “Technically, the weekly MACD bullish cross from late July continues to widen—a classic precursor to upside. Whether or not a marginal new low prints, the odds favor an advance, especially given the cross’s rare magnitude, the lowest in roughly 20 years. A clean Double Bottom would be the ideal shape.”
MACD – Weekly
ELLIOTT WAVES
Road Map
A new lower low has been printed.
A potential completion of the ending diagonal could trigger a sharp advance back to the level of origin. The Dollar Index could add about 5% over the next few weeks—likely an interim target.
Micro Chart
As the chart shows, the Dollar likely completed a clean impulsive wave off the bottom in either the blue or red count. A brief consolidation for wave (ii) in red may be needed before a rally toward 98–98.5 for wave (iii).
SUMMARY
The Dollar may have formed a major bottom. The next two days can confirm the intent and reinforce momentum on the weekly frame. Candles and technicals strongly support a bullish bias for the Greenback.
The quarterly and larger frames still favor the bulls. If that outlook changes materially, the next major signal will most likely appear before the end of September.
Happy Trading!
DXY Annual Review:
https://investingangles.com/2023/12/30/dollar-index-annual-review-dxy-dxy-usd-forex-elliottwave-gold-silver/
