It the US Dollar (DXY) ready for a rally?
Updated
This analysis is based purely on technicals, so take it with a block of salt. The dollar has made a 2nd bottom after the COVID correction, but is slightly higher. This is a very bullish signal and often is the indicator of a wave 2 in Elliott wave theory. This could mean a stronger wave 3 is ready to start.
I see this pattern in 2 distinct places.
1) August 2011 (purple line), which resulted in a great bull market that lasted 4 years and went up 40%.
2) March 2005 (orange line), which resulted in a nice rebound of 13% but ultimately end in a bear market that fell 13% (26% loss from peak).
Either way, it look like the US dollar is going to make a short term move to the up side, but it is unclear how long it will last.
Any thoughts on this?
1D
4h
I see this pattern in 2 distinct places.
1) August 2011 (purple line), which resulted in a great bull market that lasted 4 years and went up 40%.
2) March 2005 (orange line), which resulted in a nice rebound of 13% but ultimately end in a bear market that fell 13% (26% loss from peak).
Either way, it look like the US dollar is going to make a short term move to the up side, but it is unclear how long it will last.
Any thoughts on this?
1D
4h
Note
How about that for a breakoutNote
Still going strong
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