DYX Monthly vs Crypto & Stocks: The Most Bullish Ever!

٢٣ أكتوبر

The DXY is at its most bullish since June 2021. Here we can see it bouncing strongly from EMA55 as support.

We looked at the DXY and how it is related to Bitcoin (see here).
Now we want to consider the DXY on its own.

➖ How far up can the DXY go and for how long?

To start, we can see that the last time the DXY went bullish it closed green for four consecutive months. This would be the first green month, so we have another three of potential bullish action.

The bounce in July 2023 also produced four months of growth. Now, the action in the last bounce and back in 2023 were part of a consolidation pattern, what we are seeing now is the start of a bullish wave.

➢ First, within several months, or weeks, the DXY is set to hit 109. Long-term, it can go higher and hit a new All-Time High.

➢ The first long-term resistance will be around 114, which is the September 2022 peak. 111.1 would be an intermediate target.

➢ The new ATH can settle around 124/5. The last ATH was hit around 121.

This is all based on the long-term.
This is the monthly timeframe.

The DXY going bullish can have a very strong negative effect on the stock market and even Cryptocurrency but this is only initially, after several months of the DXY being strongly bullish, the Cryptocurrency market can recover and do great. I don't know about the stock market, it can be different but Crypto will be fine.

Thank you for reading.

Namaste.