The dollar continued to strengthen Friday, but its rally has been weakening. That suggests a fifth wave or wave ((B)) of an expanded flat correction is underway. Once it ends, which it will likely do not much above current levels, A correction toward 92.24 should occur. A fourth wave, wave (iv), should end above the end of wave (i) to avoid overlapping the first wave of the same degree.
There is no change in the outlook for the Dollar Index. We're open to a corrective setback starting from nearby levels, but there is no evidence the dollar rally relative to the euro is complete. Given the heavy 57% euro weighting it's unlikely the Dollar Index will turn lower while the buck strengthens relative to the euro. But the dollar is vulnerable relative to the Japanese yen, Canadian dollar. The mixed messages suggest we concentrate on the patterns visible in the individual pairs.
There is no change in the outlook for the Dollar Index. We're open to a corrective setback starting from nearby levels, but there is no evidence the dollar rally relative to the euro is complete. Given the heavy 57% euro weighting it's unlikely the Dollar Index will turn lower while the buck strengthens relative to the euro. But the dollar is vulnerable relative to the Japanese yen, Canadian dollar. The mixed messages suggest we concentrate on the patterns visible in the individual pairs.