$DXY Dollar Index Can Go Parabolic

Traders and Investors,

No matter what the media and general consensus say, simply look at the charts and trade what you see.

The dollar made a huge sharp move down recently which made the majority think and post about the "Dollar Crash". I saw 1000s of posts on social media including some from institutional analysts. But almost immediately the dollar has recovered and is back at the same level of 102.5. 🙂 This effect has been witnessed in commodities and equity markets.

As I write this on Aug 12, 2023, the dollar is showing great strength in the chart pattern formation. The pattern is kind of 75% complete so this analysis post is kind of an early warning. This early warning was sent to private clients a little while ago.

This pattern if finds momentum generally ends up in parabolic movement. Having said that there are a few things that we must consider:

1. This is a higher time frame analysis (daily/weekly chart) and picture so it may take its own time. Keep things in perspective.
2. There are 200 sma (daily time frame) along the way (yellow line) that can act as resistance. That is a good barrier to this pattern.
3. There are several levels and zones along the path to the ultimate target around 109-110. Over time DXY may go up and down on the relatively smaller time frames around these zones as a market never goes up in a straight line. Not DXY anyway 🙂
4. There are several gaps that were left unfilled to the upside. DXY usually does not leave any gaps open. There are a few gaps to the downside as well.
5. Watch USDJPY and USDCHF with it.



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3. Never rely on signals, do your own analysis and research too

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-Vik

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📌 DISCLAIMER
The content of this analysis is subject to change at any time without notice and is provided for the sole purpose of education only.
Not financial advice or signal. Please make your own independent investment decisions.
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