Dollar could be trapped within huge consolidation
Market corrections are tricky and in this post you can see why.
Dollar index weekly chart shows signs of large sideways consolidation (aka flat correction, range) after a strong drop marked with the orange down arrow 1.
This consolidation passed halfway as we can see all first moves are completed.
The first major yellow counter-move is done; it will be connected with the last yellow upmove through two white and two red counter-moves.
Why corrections are tricky? Because they last longer than many think, usually longer than the preceding move. Currently, first legs took the same time as the whole first orange leg down, therefore it will take almost same amount of time furthermore.
After completion, the second orange leg down could resume to hit $93 (orange leg 1 = orange leg 2) or even lower to retest the valley of Y2021 at 89.6
Dollar index weekly chart shows signs of large sideways consolidation (aka flat correction, range) after a strong drop marked with the orange down arrow 1.
This consolidation passed halfway as we can see all first moves are completed.
The first major yellow counter-move is done; it will be connected with the last yellow upmove through two white and two red counter-moves.
Why corrections are tricky? Because they last longer than many think, usually longer than the preceding move. Currently, first legs took the same time as the whole first orange leg down, therefore it will take almost same amount of time furthermore.
After completion, the second orange leg down could resume to hit $93 (orange leg 1 = orange leg 2) or even lower to retest the valley of Y2021 at 89.6
Note
reached the bottom of the range (red)
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