Another 48h - Vital DXY Breakout Of W Trend Reversal Formation

2024/11/17
Another 48h - Vital DXY Breakout Of W Trend Reversal Formation
“the first full calendar week after the outbreak was a success, last week!
what now? does it continue next week? will there even be a relapse?”

Sudden rethink on Wall Street? From anticipation to euphoria? Now that Trump is coming to the White House - friend of the working class and also of WallStreet! What could possibly go wrong? And that's exactly where the problem seems to be! Because if all of us who are involved in the price action have the knowledge, think like that and have already bought or sold accordingly? Who else should sell or buy at this level, on this terrain of price action, in the various asset classes?

Overall robust US economic data weighed on WallStreet. While both the US currency and/or US yields rose slightly. Retail sales rose more than expected in October 2024 - sales were primarily supported by car sales. But the stock market can easily panic if I'm not mistaken. Because the FED appears more cautious in public about further interest rate cuts. At least in the past week. “Economy “remarkably good,” no need to hurry lowering rates,” Powell said last week on Thursday. Which particularly disappointed WallStreet. And at this point I feel called upon, like a teacher, like a head coach of a football team, to want to teach his players, his students, followers, the same thing again and again, that it is never just the FED - fundamentally the central banks. It's up to us, those who have money, and how we use it, on the financial market in the price action, and/or above all in everyday life. Because regardless of the current us inflation data, the issue of war seems to remain with us! Ukraine? Israel? Where is the peaceful solution? Above all, left-wing green politics, in our so-called West, under the guise of liberal democracy, was already a driver of inflation; let alone the costs for Ukraine. And if the geopolitical tensions erupt in other hot hot spots of war such as Ukraine and/or Israel, negative influences, including interruptions in the international movement of goods, can be expected again. In addition, lower interest rates, at least as recent history has taught us since the collapse of Lehman Brothers in 2008, i.e. since the zero interest rate phase, do not lead to budgetary discipline on the part of governments. On the contrary: the scope was consistently used for more debt and more spending - above all by left-wing green politicians, in our so-called West, under the guise of liberal democracy. And was and still is today a driver of inflation. So the return of inflation could be the surprise of next year 2025. That's why "the Fed is in no hurry to lower interest rates", if I'm not mistaken.

“It's not whether you're right or wrong, but how much money you make when you're right and how much you lose when you're wrong.”
George Soros

Will We Fall Back In The W Trend Reversal Formation?
Will We Defeat The Old Annual High Of 2024?
Are We Heading To Annual Highs Of 2023?

These are the 3 most important questions regarding price action in DXY. And which we should keep in mind - and let it be answered daily in the form of the price action, to learn may be day by day (not) something new.

107.064 : 2024/11/14 - cC) New Annual High Of This Year 2024
106.673 : 2024/11/15 - last price action
105.441 : 2024/11/06 - b) Higher High After 1st False Breakout
104.570 : 2024/10/23 - a) 1st High, False Breakout Out Of Formation
104.187 : 2024/11/07 - bB) Higher Low After 1st False Breakout
103.373 : 2024/11/05 - aA) 1st Low, After False Breakout Out Of Formation
While the reached new annual highs last week, the breakout from the W trend reversal formation is also very interesting. I tried to describe it in 3 waves - to better understand the price action in retrospect. So that we can build on that, we have to sketch out a better future scenario. And I have now come to the conclusion that a relapse in price action below the annual highs in 2024 and/or even the annual high in 2023 is quite realistic to expect. Because of the 35 trading days in which the went from the annual low in 2024 to the annual high in 2024, only 10 trading days were negatively bearish red. Which is why we should also pay attention to the upper price action levels; as they could act as both a support zone and a resistance zone.

With best wishes
and with good intentions!
Aaron

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