Following March 2020, DX1 has decreased upwards of 13% with increased M2 money supply and inflation. As the next year unfolds the interest rate hikes will increase the dollars strength and hinder inflation.
Wave 1 begin Jan 2008 at 72 and peaked January 2009 at 84.5. There was a retrace into June 2011 at 74.
Wave 3 peaked at 101.74 in December 2016 and has been in a descending wedge formation since.
MACD flipped positive in August 2021. RSI is above 60 with bearish divergences for histogram, OBV and MFI.
Due to the macroeconomic backdrop and the Federal Reserves actions, I expect the wedge to bounce off the bottom and break to the upside
First take profit at $102 and second at the old high of $121.
Wave 1 begin Jan 2008 at 72 and peaked January 2009 at 84.5. There was a retrace into June 2011 at 74.
Wave 3 peaked at 101.74 in December 2016 and has been in a descending wedge formation since.
MACD flipped positive in August 2021. RSI is above 60 with bearish divergences for histogram, OBV and MFI.
Due to the macroeconomic backdrop and the Federal Reserves actions, I expect the wedge to bounce off the bottom and break to the upside
First take profit at $102 and second at the old high of $121.