December 20th, 2016: US Dollar Index Chart Update
Posted by pugsma on December 20, 2016
6:00 pm EST: The US Dollar Index (DXY0) is nearing a very important top here at 103.56. The move up off the April 2008 low at 70.70 is finishing a Primary 3 (P3) wave that is exactly a 1.62 Fibonacci extension (103.35) of the P1 wave that top at 89.62 in March 2009. 103.56 was also a near perfect channel line hit on the weekly chart.
Looking closely at the P3 wave that began in early year 2011, it’s clear that P3 is completing 5 major wave up off the 72.70 low. Major [5]=[1] at 102.98 and within the major [5] wave, minor 5 =0.62*minor 1 at 103.46. Thus there is a good deal of price confluence at current 103.56 area.
Commodities should begin to benefit from a weaker dollar during the coming Primary 4 (P4) wave that has a target in the 96.46 to 91.83 area, which would be a 23%/38% Fibonacci retracement of the P3 wave.
DXY0 Daily chart:
DXY0 Weekly chart:
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