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