DXY: Is the US-Dollar Index Ready for a Decline?

6 thg 7

DXY: As long as the price stays below the (B)-wave high from end of June, expectations are for the DXY to decline into the low $90 region according to the white scenario. I see wave (C) to the downside as ending diagonal pattern, in which the sub-waves of all waves i - v are 3-wave structures. This would explain why the fibonacci resistance area was broken before the DXY reversed to the downside. B-waves do not respect fibonacci levels that well. However, any break above the June high will increase probabilities for the alternative interpretation of a larger B-wave as per the yellow scenario.