- Everything indicates that the recession in 2023 is pretty much inevitable. And when the Fed pivots , a market crash is almost guaranteed. Nothing is for sure, but it’s based on historical statistical data.
- The DXY index is currently sitting at the strongest support ever created. It’s the rectangle line + wave (3) + wave 1.
- As per Elliott Wave rules, in an impulse wave, wave 1 cannot overlap wave 4. Only a small wick is permitted. I think this is the best place for a trend reversal and a strong dollar again.
- Let me know what you think about the recession and the strong DXY dollar in the comments! I want to know your opinion!
- As you can clearly see, this is the monthly chart, and the price is following this ascending parallel channel . Since 2008, we have been in an uptrend, and trend is your friend until the end.
- I think if DXY drops below 101, then it’s over and this channel is going to break down. The dollar will be weak, and the bull market is imminent.
- But now there is no point in speculating on a weak dollar; why would you do that? I don’t think it’s a good idea to short the support and long the resistance. But the majority of traders do that, which is a paradox.
- This is my update on the DXY index. The dollar is still in a strong uptrend, and from a technical perspective, the uptrend is intact. But let’s see if the big players still want a strong dollar. We will discover soon!
- Happy trading!
DXY will trigger a huge crash! Best to stay in cash.
Previous ArticleBitcoin Bogdanoff – Can this pattern predict the bottom?
Professional trader and analyst. My specialization is in Elliott Wave Theory, Fibonacci tools, chart patterns, candlesticks, and price action. To analyze market structure, I use market profile and volume profile in my trading system. To analyze trends, I use trendlines, VWAP, and simple moving averages.