Technical Analysis Blog | PUG Stock Market Analysis, LLC

PUG Stock Market Analysis is here to help with SP500 technical analysis, stock analysis and more. Read our technical analysis blog to learn more.

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:


Sorry, the comment form is closed at this time.

%d bloggers like this: