One of my last DXY forecasts established the possibility to arrive at the 97.90 level "Poised to reach the 97.90 level.... black channel" published January 20, ..... Well, It did once the last Friday and also did it again today. But as you can see the market is still traded around those pink lines stating that is time to go back. Let´s see what is toes since definitely as always sated, this is the market. I have 2 options now. Let establish my point. LONG I think that if you want to learn history, you can learn about human behavior as Elliot signaled reading the market the best you can. You still can see how the DXY has strengthened its position because of the coronavirus originated in China. The market is cautious about the possible effects of it over the second-largest economy .... understandable. The most affected can start naming Indexes as SPX, US30, or economies AUD, NZD, while JPY, or CHF, Gold and Silver being bought. In my scalping will continue trading within the yellow and green lines. If nothing new about de coronavirus is very probable to arrive even the blue line and what I mean for nothing new is no vaccines more contagion and new deaths as now. Anyway, I´m trading the red channel. Even the technical indicators as RSI and Stock RSI showing overbought, when I see the Mago Estraperlo I can see is not even showing a little intention to go bear. I will not start selling until the red channel being broken. BEAR If the market is ready for the rebound but don´t think so... at least YET maybe correction but nothing more. Be wise and Good luck. Follow the blue arrows.
