Dollar Index – Weekly Analysis
Let’s start today’s Dollar review with Twain: reports of the Dollar’s demise are greatly exaggerated. We’ll review the mid- and long-term signals and prospects. Before the crowd catches up, we’ll unpack what the prints imply for the next leg and where the key lines in the sand now sit.
CANDLES
We have plenty of convincing signals today. The weekly confirmed a bottom with a Harami/Hammer/Tower Bottom—way too powerful. The daily extended last week’s Three White Soldiers, cleared the 50-DMA, and is flirting with the 100-DMA with very good chances of breaking resistance. The 8D frame, which closes on Monday, is tracking for a solid Bullish Engulfing, barring a huge pullback.
The Dollar is bullish as far as the eye can see.
We’ll discuss the monthly and larger frames next week with the monthly closure.
The weekly MACD bullish cross has been widening after the indicator hit its lowest level in roughly 20 years. The power of the reversal could be so strong that I wouldn’t be surprised by 8–10 green weeks in a row. And that’s not even counting a potential Double Bottom, best seen now on the 8D frame. I hope you are prepared.
MACD – Weekly
ELLIOTT WAVES
No changes to the Dollar’s long-term targets. Wave 5 may be starting within the broader long-term bullish wave structure we’ve been tracking since the initial chart was published in November 2020.
Road Map
The energy of the rebound off the bottom has been impressive, potentially marking the completion of an Ending Diagonal.
SUMMARY
The Dollar has expanded its bullish odds to the weekly frame and is setting up to flip the mid-term frames strongly bullish over the next few weeks. Momentum and technicals are strongly bullish, signaling a strong and prolonged rally. The upcoming monthly closures are expected to confirm the bullish bias.
Happy Trading!
DXY Annual Review:
https://investingangles.com/2023/12/30/dollar-index-annual-review-dxy-dxy-usd-forex-elliottwave-gold-silver/
