Today, the FED decided to cut the interest rate by 0.25%. Opposite to the bearish sentiment on the Greenback facing a likely rate cut, the Dollar Index soared to yearly highs touching the 98.68 level.
The bullish equal leg
The FED’s decision boosted this bullish movement, but the price action suggests that it could be just a bull trap. Aided by the economic news, the DXY jumped, completing a second bullish leg. The climatic movement added to the bearish sentiment, makes us notice that the structure should correspond to a fifth wave. Finally, given these factors, we assume that a corrective move should start soon.
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Remember that the price is not forced to move as our outlook proposes. The chart released corresponds to an educational application of the Elliott Wave theory. Comments issued don’t represent an investment recommendation. Leveraged products are complex financial instruments and are not recommended for a certain type of traders. Losses can exceed deposits.