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Dollar Index – Quick Update

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In this report, we evaluate the latest signals by the USD Index. By examining candlestick structure, momentum trends, key technical levels, and the Elliott Wave context, we determine whether the long-term roadmap remains intact and clarify the highest-probability paths for the Dollar in the weeks and months ahead.

CANDLES

The Dollar Index is setting up for a potentially strong advance—at least according to the candlesticks. Today, the Greenback formed a bottom on the daily frame and reclaimed the 8 EMA support. A modest follow-through tomorrow, on the order of 0.25%, would be sufficient to trigger strong bullish reversal combinations on frames up to and including the 8D, a development with meaningful implications.

At the same time, the monthly candle would fail to confirm a bearish continuation unless DXY declines by at least 0.75%, a considerably more demanding requirement than what bulls currently face. A further push higher would also support the recording of a very long 50/200 quarterly moving-average golden cross.

Patience remains warranted as the final prints come into focus. The annual review is shaping up to be particularly informative.


Happy Trading!