Since end of December 2023, DXY has been on an uptrend. According to my analysis, DXY has completed a 5 wave impulsive wave, labelled as wave (1) with a fifth wave extension as depicted in the hourly chart. The ideal target price for fifth wave extension will be 1.0 or 1.618 of the length of starting wave to the end of wave 3 measured from the end of wave 4. In this case, the length is 1.382.
We are currently in the retracement region of wave (2). The rule of thumb is the retracement of wave (2) should not exceed more than 100% of the fifth wave extension. A typical range should be between 38.2 to 61.8% of the fifth wave extension. It has already hit the 50% retracement mark. It may have already finished the abc retracement or it is on its way for the c wave. It is anybody guess ! Once the retracement of wave (2) is completed, wave (3) should be at least 1.618 of wave (1).
Contrary to what many traders and analysts predict, the future of DXY is bullish, at least in the midterm.
We are currently in the retracement region of wave (2). The rule of thumb is the retracement of wave (2) should not exceed more than 100% of the fifth wave extension. A typical range should be between 38.2 to 61.8% of the fifth wave extension. It has already hit the 50% retracement mark. It may have already finished the abc retracement or it is on its way for the c wave. It is anybody guess ! Once the retracement of wave (2) is completed, wave (3) should be at least 1.618 of wave (1).
Contrary to what many traders and analysts predict, the future of DXY is bullish, at least in the midterm.