- Everything indicates that the recession in 2023 is pretty much inevitable. And when the Fed pivots, a market crash is almost guaranteed. Nothing is for sure, but it's based on historical statistical data.
- The DXY index is currently sitting at the strongest support ever created. It's the rectangle line + wave (3) + wave 1.
- As per Elliott Wave rules, in an impulse wave, wave 1 cannot overlap wave 4. Only a small wick is permitted. I think this is the best place for a trend reversal and a strong dollar again.
- Let me know what you think about the recession and the strong DXY dollar in the comments! I want to know your opinion!
- As you can clearly see, this is the monthly chart, and the price is following this ascending parallel channel. Since 2008, we have been in an uptrend, and trend is your friend until the end.
- I think if DXY drops below 101, then it's over and this channel is going to break down. The dollar will be weak, and the bull market is imminent.
- But now there is no point in speculating on a weak dollar; why would you do that? I don't think it's a good idea to short the support and long the resistance. But the majority of traders do that, which is a paradox.
- This is my update on the DXY index. The dollar is still in a strong uptrend, and from a technical perspective, the uptrend is intact. But let's see if the big players still want a strong dollar. We will discover soon!
- Happy trading!
