US Dollar is coming into resistance as expected

Gregor Horvat Wavetraders

US Dollar Index with ticker DXY is in a massive recovery and it’s unfolding a five-wave bullish cycle within higher degree wave (C) of a larger (A)(B)(C) correction as expected. We talked a lot about that in the past month, we also shared a tweet, when we spotted wave 4 correction within uptrend that can send the the price higher for wave 5.

Let’s start from November 25th, when we noticed a completed subwave “v” of a lower degree impulse within wave 3, which caused a new drop, but we pointed out it’s only a wave 4 correction that can retest the support around ideal 38,2% Fibo. retracement.

dxynov25 — DXY 4H Chart From November 25

Later on December 10, DXY made a nice corrective pullback into projected support area, from where we expected a bounce and bullish continuation for wave 5 of (C).

dxydec10 — DXY 4H Chart From December 10

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Author

Gregor Horvat

Wavetraders

Experience Grega is based in Slovenia and has been in the Forex market since 2003.

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