DOLLAR INDEX - BLOODY MARKETS AHEAD? | DESCENDING WEDGE/FRACTAL
- Dollar Index has undergone a deep and extensive sell off since Q1 2020 when coronavirus spread throughout the world
- After an insane amount of printing, the dollar has inflated and devalued tremendously
- Technical analysis indicates that the DXY has oversold and is due a reversal and correction
- Price action is acting very similarly to the last cycle of the DXY pumping then selling off into a descending wedge
- Price seems to be breaking out of the descending wedge and is suggesting an explosion to the upside
- Monthly and weekly stochastic is deeply oversold and crossing over indicating a reversal
- Targets are the fibonacci zone as they are also key volume zones
- First target will be the 38.2% fibonacci as this coincides with the 200WMA and is a key volume zone
- Although the dollar has inflated and devalued so much, it is plausible for a significant retrace and pump up to occur whether short-term or long-term
- As a consequence, all markets would be hit with selling pressure. Markets including stocks/shares, USD FX pairs, and especially crypto with the cryptocurrency market down a significant amount
- Caution is deeply advised with respect to long positions in the mentioned markets above, as well as broader investment strategies
