I had thought that $DXY was in the final stages of a 4th wave correction, after which I expected it to turn lower. However, given the recent price action, and its pushing above the 250-week EMA, I believe it may have a higher destination. Since it’s now pushing the limits of what can be credibly interpreted as a wave 4 of that degree, I am upgrading the wave degrees across the board, and I believe we are in a much bigger wave 2 correction.
It is still probably most of the way done (in time, as with the other count), it’s just that in this case, it probably needs to go higher first for a few weeks or so. The target range for a wave 2 of this degree will coincide with a retest of a long-term trend line, from beneath.
Ultimately, this is a much more bearish count for $DXY in some respects (in the intermediate term). On my other count, I was looking to take out the lows from early this year soon-ish, then have this rally we’re having now. But since we’re having it now, we’re likely to end up going significantly lower in the next move down, and sooner than I had thought before.
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