Dollar - Slump Engulfed, Next Wave Up?Just as we looked at the previous last August correction, the question was; can a more impulsive wave engulf the slump, and it did to then print the next wave up.
Now the same thing is happening again.
Dollar did look quite impulsive with the bearish slump, but on Friday it printed a hammer and now today its having a very big pump that has easily engulfed the slump with even more impulsive action.
Still 6 hours until the current day candle closes but currently this is printing a very bullish Evening Star Candle formation.
And so this is more likely another wave up.
Remember that these Fibonacci Golden Window bands are not only to find reversals but also continuation patterns and this 1:0.618 GW may now prove to be a landmark for the latter.
The big blue band above is the long term retracement GW with pivots taken from 2022 top to 2023 bottom.
As we looked at before, that is the next obvious reversal point and if it slightly overshoots the extension 1:1 then it can reverse in both the extension GW and the blue long term 0.618 GW.
In terms of Fibonacci that is the most likely reversal point around $108.5 and slightly beyond.
That said it hasn't yet made significant price discovery past the local high and so if another slump comes and we have overlapping highs then it could yet be a top.
But for that to happen any bearish action would have to be very high volatility to match this bullish move.
Its interesting as "Craig" pointed out that there hasn't been a negative reaction in stocks or crypto which even had a nice pop today.
I think perhaps this is where those markets are becoming bullish now and they are leading the dollar in preparation for it topping.
So perhaps we may see some fireworks when it does actually top.
Also interesting that Gold and Silver are dumping hard but Palladium is holding well.
These are all probably clues of what will happen in the next market phase 🧐.
