US Dollar Index had dropped through 89.20 lows on January 06, 2021. Since then, the index has remained in control of bulls and managed to carve a series of higher highs and higher lows. Bulls are expected to remain in control until 89.20 holds.
The wave structure reveals bulls might have managed to carve an impulse Wave 1 and corrective Wave 2 around 90.95 and 89.70 respectively. Since then, it has been unfolding into Wave 3 higher towards 94.50 and further.
Also note that Wave 3 seems to be extended as the index has carved Waves (i) and (ii) around 91.40 and 90.60 recently. Furthermore, lower degree Waves I and ii also seem to be in place around 92.50 and 91.36 respectively.
If the above structure holds well, US Dollar Index might be preparing for a Wave iii rally towards 93.00 levels anytime soon. Also note that the above structure remains valid until 90.60 remains intact, going forward.
Alternate counts remain possible but a break below 90.60 would be required for them to materialize. US Dollar Index might be unfolding as an expanded triangle or an expanded flat before reversing higher again. We shall bring them into discussion later.
US Dollar Index remains a good case to be bought on dips until 89.20 remains intact. It remains to be seen whether Wave 3 is extending or Wave 2 is unfolding as a complex correction, going forward. Bulls are eyeing 94.50 levels in the next few weeks.
Finacademy Technical Team
Silver has raised through $27.55 levels this morning, alongside most risk assets. The metal has approached a strong resistance zone now and bears might be inclined to take control back soon. Also note that it has almost reached the fibonacci 0.618 retracement of the entire drop between $30.13 and $23.80 levels respectively.
USDJPY bulls are now looking poised to push through 112.00/50 mark, after have carved yet another higher low around 107.50. Please note it bounced off the trend line support since January 2021 lows as well. Looking higher from here for next few weeks.
Gold had raised through $1799 yesterday before reversing sharply towards $1770 before finding support again. The yellow metal is pulling back at the moment and seems to have carved a meaningful top already yesterday. If correct, $1786 might offer strong support.