$DXY ABC continuation lower?
Another lower high here on DXY at the 886 retracement. Typically, in the case of an ABC, youd expect to see an eventual 1.618 extension lower.
Using the 1985 peak to trough fractal, a move to the 1.272 would mirror that in both price and time, and could be a level we get a pivot, with an eventual move lower to the 1.618 by 2035 using the "When to make money" schematic attached.
This isnt necessarily a prediction, however the DXY only makes lower highs, and these would be reasonable expectations of a continuation of that trend, over time.
1985 and 2023 are both labeled on this schematic as a major pivot point, and with that logic, we could expect a bounce on the DXY into 2026 as well.
Even at the 1.272 extension, which would bring us to the lower demand line, is a 40% devluation of the underlying asset here.
While i would take this as a short trade, it could have great implications for asset markets.
Using the 1985 peak to trough fractal, a move to the 1.272 would mirror that in both price and time, and could be a level we get a pivot, with an eventual move lower to the 1.618 by 2035 using the "When to make money" schematic attached.
This isnt necessarily a prediction, however the DXY only makes lower highs, and these would be reasonable expectations of a continuation of that trend, over time.
1985 and 2023 are both labeled on this schematic as a major pivot point, and with that logic, we could expect a bounce on the DXY into 2026 as well.
Even at the 1.272 extension, which would bring us to the lower demand line, is a 40% devluation of the underlying asset here.
While i would take this as a short trade, it could have great implications for asset markets.
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Worth noting, the full length of (a) to (b) continued to an eventual 58 bars, and could be relevant to the length of the deeper push to the 1.618, which puts us closing to that 2035 peak on the schematic.