DXY has met resistance perfectly at the 93.437 Gann level. As we can count 5 waves to the upside (green count) we can assume that wave (c) is complete.
That means the entire wave B or 2 (yellow count) might have come to an end. An idea could be to prepare long EURUSD exposure for example, if you don’t trade a DXY derivative directly.
What’s next?
We need to observe the character of the next wave over the next few days. A sharp move down will indicate a wave 3, and a lengthy, complicated, sluggish wave will typically indicate a wave C.
Should a wave C unfold, we need to prepare for a significantly stronger Dollar towards October. That would be in alignment with the equinox on 22 Sept. Historically, autumn equinoxes often coincide with tops and subsequent bearish momentum for stocks.
Correlations: QQQ and SPY are likely to retrace the previous wave down, and a weak USD may trigger just that.
China: The Evergrande crisis may continue to escalate. A debt crisis (or the fear thereof) may trigger institutions to move into cash, resulting in buying pressure for USD. We need to keep an eye on Evergrande developments as major debt default crises like to spiral out of control.
STO = sell to open
BTC = buy to close
BTO = buy to open
STC = sell to close
These abbreviations in the chart are ideas provided as educational information and do not constitute financial advice.
______________
In my analyses I combine Elliott waves, Gann theory, and planetary aspects to identify turning points in the markets & derive high-probability trading ideas. The strategy is to build leveraged exposure when markets are likely to expand (momentum), and to use options premium decay for consistent income when markets may contract (range).
Get a 14 Days Free Trial: constellations.trade
Open an account here if you'd like to support my work:
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Binance - 10% off trading fees with this link:
accounts.binance.me/en/register?ref=LLBB97HL
Disclaimer:
The views and ideas expressed in this analysis are that of the maker. They are provided as educational information and do not constitute financial or trading advice.
That means the entire wave B or 2 (yellow count) might have come to an end. An idea could be to prepare long EURUSD exposure for example, if you don’t trade a DXY derivative directly.
What’s next?
We need to observe the character of the next wave over the next few days. A sharp move down will indicate a wave 3, and a lengthy, complicated, sluggish wave will typically indicate a wave C.
Should a wave C unfold, we need to prepare for a significantly stronger Dollar towards October. That would be in alignment with the equinox on 22 Sept. Historically, autumn equinoxes often coincide with tops and subsequent bearish momentum for stocks.
Correlations: QQQ and SPY are likely to retrace the previous wave down, and a weak USD may trigger just that.
China: The Evergrande crisis may continue to escalate. A debt crisis (or the fear thereof) may trigger institutions to move into cash, resulting in buying pressure for USD. We need to keep an eye on Evergrande developments as major debt default crises like to spiral out of control.
STO = sell to open
BTC = buy to close
BTO = buy to open
STC = sell to close
These abbreviations in the chart are ideas provided as educational information and do not constitute financial advice.
______________
In my analyses I combine Elliott waves, Gann theory, and planetary aspects to identify turning points in the markets & derive high-probability trading ideas. The strategy is to build leveraged exposure when markets are likely to expand (momentum), and to use options premium decay for consistent income when markets may contract (range).
Get a 14 Days Free Trial: constellations.trade
Open an account here if you'd like to support my work:
Deribit - Trade Bitcoin option premium decay strategies here:
deribit.com/reg-14912.6680
Binance - 10% off trading fees with this link:
accounts.binance.me/en/register?ref=LLBB97HL
Disclaimer:
The views and ideas expressed in this analysis are that of the maker. They are provided as educational information and do not constitute financial or trading advice.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.