DXY Descent Alert: Path to 102.800 - 102.280Update on DXY's Movement:
The DXY has hit our projected targets in DXY Rebound Alert: Prepare for the 104-105 Swing and completed its last wave in a WXY pattern, with a truncated Y wave.
Following this, we've observed a downward trend, with the DXY breaking through the main price channel. We anticipate a decline from the current area to the Fibonacci levels of 0.5-0.618, positioning the index around 102.800 to 102.280.
Immediate Outlook:
A closer inspection of the monthly chart suggests a sideways movement within the 103.500 to 104.450 range until the end of February, after which we expect the DXY to descend towards our specified targets.
Next Steps After Target Achievement:
Once the DXY reaches our anticipated Fibonacci levels, the crucial question will arise: Is this descent indicative of a broader reversal, potentially driving the DXY below the 100 threshold, or is it a temporary retracement in anticipation of a subsequent rally that could propel the index above 107? This determination will be essential once we hit the specified target range, guiding our subsequent analysis and strategic approach.
Invalidation Point:
Our analysis would need reevaluation if the DXY breaks and closes above the monthly trend line. It's essential to wait for a retest of this break to confirm its validity. Such a development could alter the current outlook significantly, necessitating a strategic reassessment.
take a closer look on the 1M Frame chart below:
