DXYI had been calling for DXY to retrace after reaching the 23.6%($94.40) back to local trendline and 14% Fib.
The DXY pulled back to $93.53, just shy of the 14%, as well as the local trendline(blue dotted line).
Now we find DXY regaining its corrective momentum to the upside.
I still contend that the 138.2%($95.39) Fibonacci extension of correction is in play, and perhaps the 38.2% Retracement($96.04)!
Perhaps the final corrective wave(call it "C" or "Y") will end in a 5 wave diagonal, not impulse?
To reiterate;
I believe DXY is following a similar trend as in 2016 during the election period in the USA! In 2016
INDEX was able to rally through the election into early January, 2017. It was at that point that the DXY began to breakdown for one year. During this time Bitcoin(& Crypto) inversely correlated, and of course was able to rally to its ATH as the INDEX found a bottom in January, 2018. From there the Dollar has rallied up until March of this year(2020), at which point the Dollar again broke down, and has found support on its Long Term trendline. I believe a similar pattern will play out, give or take a month or three, and DXY will eventually break below the 2011 trendline. Let's see how it all goes....
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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.