Important Top Coming in US$ …

If I can so myself, I’ve had a really good read on the US$ and its longer-term price structure.  Here is the weekly chart for the US trade dollar …

US Trade Dollar Index (DXY) – Weekly Chart

I called out the push right into the Wave 3 high back at the end of 2016/beginning of 2017, and I think that we are at just as important of a top as that resistance level here soon as well.  Whether or not we are making an ABC or a 3-wave move lower off of that late 2016 high, the next move will be for the US$ to go a fair bit lower.

That move lower will have a big impact on US interest rates, inflations, commodity prices (i.e., gold – see my note from yesterday) etc.

US Trade Dollar Index (DXY) – Daily Chart

The corrective bounce in the bigger weekly chart can be seen on the above daily chart to be an almost complete 3-wave structure.  In fact, I think we are in the last minor leg higher in the very last leg into Wave-3 resistance.  The pivot high to be broken and therefore, complete the price structure is $97.20 vs the $96.90 close on Friday.

Bottom Line … not many people are focused on the upcoming change in direction in the US$ and the important change it will create in asset pricing.  Best of luck to all.

Cheers … Leaf_West

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