Markets are very slow today, well, not only today, its been the case for almost the whole last week despite the important ECB meeting. But hopefully, we will get some price action and moves this week because of FED, BoE, and even NFP on Friday. So these events can make dollar even stronger, or we may see a drop from the resistance on DXY which is expected from Elliott’s wave perspective.
Looking at the updated chart below, we can see the ongoing correction, which can be a bit more complex it seems, but resistance remains the same; at 104-104.30. If we see a drop and move below 102.50 this week, confirmed by daily close price, then think dollar bears will start accelerating. At the same time, already strong GBP can break higher, while even commodity currencies can wake up. Also, CHF can be interesting with more upside, which can be supportive for metals, silver in particular.
I will talk about this and more in our webinar later today at 15CET.