USDollar is weak, and it may stay so for a while as USDollar Index is in an impulsive decline, so it could easily stay in the downtrend, especially if we take a look at the ratio charts of USDollar Index against 10Y US Notes (DXY/ZN) and SP500 (DXY/SPX).
DXY/ZN (USDollar Index against 10Y US Notes) ratio chart shows an ongoing five-wave bearish impulse with room for more weakness within subwave “v” of 3 after current subwave “iv” pullback, which can keep USDollar under bearish pressure.
On the other hand, DXY/SPX (USDollar Index against SP500) ratio chart shows a sideways consolidation due to weak stocks in the last couple of weeks, but it can be forming a bearish ABCDE triangle pattern, where we are observing a three-wave abc decline within wave D. And, while subwave “c” of D has space for more weakness, it means that USdollar can stay down even against weak stocks.
All that being said, seems like USdollar will stay one of the weakest currencies, and USdollar Index should see a bearish continuation after any recovery.
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