Dollar Index (DXY) – Bullish Correction – Minute IV

Following up on the previously posted “FED Rate – DXY Technicals – Ready for a Bullish Corrective” article, DXY indeed went towards lower levels, however it did not properly commence the expected Bearish Swing, showing overlaps in its sequence, which could be a sign that the Bullish Corrective is possibly starting this week.

DXY is showing a possible Bullish Divergence, which is present at key Fibonacci Levels, showing a good probability of a Bullish Impulse, caused by a Bullish Divergence and/or the visible Bull Flag.

This Bullish Divergence could signal the end of Minute III (red), which was triggered along with my previous post on Dec 12^th “Fed December Rate Hike – DXY Technicals – Elliott Wave Analysis”.

DXY – 2H Chart (picture):

DXY – 2H Interactive Chart:

Forex Pairs in Focus:

USD/CHF – 2H Chart (picture):

USD/CHF is currently developing a possible Reversal Pattern, with an Ending Diagonal pointing towards a probable Bullish Swing, also accompanied by a Bullish Divergence and a Bull Flag possibly forming on the upper converging line.

USD/CHF – BUY Position:

• Entry Level – 0.9300 (or Market if Aggressive)
• SL – 0.9170
• Target – 0.9670

USD/CHF – 2H Interactive Chart:

EUR/USD– 2H Chart (picture):

EUR/USD– 2H Interactive Chart:

EUR/USD is showing clearer signs of a Bearish Divergence possibly starting.

At this stage the Fibonacci Extensions are pretty much reached and another quick Swing on the up-side could pave the way for the Bearish Divergence to probably take effect at the Expanding Ending Diagonal upper line.

However, if a Bearish Breach of the lower line would occur, it could give Bears more confidence and probably move the price lower in an aggressive manner.

EUR/USD – SELL Position:

• Entry Levels:
  Aggressive – 1.2450 or Market Entry with SL @ 1.2500
  Conservative – 1.2630 with SL @ 1.2800
• Target – 1.2200

Many pips ahead!