01.01.2022

MONTHLY CHART – We highlight the area of the chart we want to focus on for short term direction. The MONTHLY chart looks OFFERED, meaning, we feel there could be some pressure for the DXY index to move lower.

WEEKLY CHART – We define our quadrant, as we want to break down different time-frames. Is the last leg corrective ?

DAILY CHART – This is our quadrant, on the daily chart. Some observations. The congestion marked by the box looks like the conclusion of a c-wave. It also could be the conclusion of a 3-wave. Both those scenarios are BEARISH and a corrective wave lower could ensue.

DAILY CHART – The thesis of it being a Wave-3 end and the beginning of a Wave-4 makes sense. The congestion formed leads us to believe that there was exhaustion in the move higher and selling pressure emerged, possibly due to positioning being skewed.

2-HOUR CHART – For a correction to gain momentum, we would have to break through the downside level of 95.50 with conviction. That is the immediate level to watch.