DXY – One more climb is pending.
During the first half of 2018, Dollar Index found support at 88.25, from where the price made a first bullish impulsive move surpassing the previous high at 90.57; after this movement, DXY made a simple corrective structure as an A-B-C pattern, carrying to a new bullish impulsive move as a “three of three” pattern. For the second half of 2018 and the first half of 2019, we expect the development of a complex corrective structure which could fall between 92.35 to 93.33, from where the Greenback could start to bounce starting a new rally completing an upper degree bullish cycle. The target of the last bullish move is between 96.24 to 97.43. From this area, DXY could start to fall developing a bearish extension of the downward move started on January 2017.
EURUSD – Expecting for a new rally.
Probably the common currency will be the trade for the next year. Since 2017, the pair made a first impulsive wave in upper degree; in the first half of 2018, the euro has been moving bearish correcting as an “A” wave, and now is consolidating as a “B” wave which could find resistance in the area between 1.1859 and 1.1965. For the rest of the 2018 and 2019, we foresee for the EURUSD pair, the completion of the A-B-C pattern, which could end in the zone between 1.1147 and 1.0893. From this area the price could give way to the start of a new bullish wave, or said in other words; we expect a wave three of upper degree, which could drive to the euro to see the 1.40 area.