We are experiencing a strong rally from US Dollar – and that is not surprising! We have been alert on DXY strength, and have been updating our members consistently on projected waves – which were in tune with the market. Let’s see what we had to say about DXY 4 days ago:
“Middle East tensions continue to escalate, pushing crude oil sharply higher with prices gapping more than 20%, which is adding pressure on stocks and keeping markets in a risk-off mood. At the same time, the US dollar has strengthened as investors seek safety. While gaps often get filled and the dollar may still be trading within a fourth-wave consolidation that could take the form of a triangle or flat, the broader outlook suggests a potential pause followed by another push higher into wave five. Key support for the dollar index is seen around the 98.85–98.66 area, where buyers may step in as geopolitical uncertainty, inflation concerns, and recession risks continue to support demand for the USD.”
This was before we saw this strong rally into fresh highs! Currently dollar is heading towards some Fibonacci resistance area as shown on our fresh update from today – 13th of March:
As you can see the dollar has been recovering very nicely since the end of January, when we were looking for the final push to the downside to complete the higher degree downtrend. Since then, we have higher highs and higher swing lows, with a very strong push in the last few sessions. This can be counted either as wave 3 due to the extended structure now to above 100 level, and close to 161.8% extensions which is usually the most ideal fib target. So seems like bulls are going to stay here but of course there can be a new setback still this month; ideally wave 4 pullback its what we should be aware off. Support on dips is at 99.50, followed by 99- 98.70.
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