Wanted to revisit the dollar, as we are now about 25 trading days from the last swing high. In those 25 days, we’ve seen the USD move from 83.63 to a low (so far) of 79.39, with the bulk of that move coming in the last 13 days.
Is it time for a rebound, at least in the short-term? I’m thinking “yes”, as the cycle seems ready for a pause higher in order to rebuild energy to the downside.
Notice, too, how we are very near the S2 target for this month, and a nice upward pause would hit a pivot point “ceiling” next month of around 80.78.
Gold and equities would then be expected to have the opposite reaction, with a pause in their recent upward moves, only to resume higher in early to mid October.
We’ll see, but these are the pivots I’m watching in the coming days as a possible scenario.
Have a good day and trade the extremes!