Dollar Nears Wave Target After Failure

Dollar Nears Wave Target After Failure;
Bitcoin/Ethereum Prepare for Next Drop…
Brief Bounce Should Trigger New Wave Down.


06/28/17 Weekly Re-Lay Alert:

“The Dollar Index failed to follow-through higher after turning its intermediate trend from down to neutral. That has allowed this decline to extend & exceed the duration of the two previous declines while nearly completing a 180-degree/6-month decline from its early-Jan. peak.

It has also allowed the Dollar to get closer to matching the magnitude (~8.50 points) of those two previous declines – with 95.10/DXU representing that wave objective and coinciding with monthly support.

The Dollar has nearly reached its weekly HLS (95.44/DXU) – the extreme downside target for this week.  Combined with the daily trend pattern, that sets the stage for another 1–2 week low in the next 1–2 days.  As stated before, this new low does not change analysis for a subsequent rebound high in early-Sept.

[Not surprisingly, the accelerated Dollar sell-off prompted another quick surge in Bitcoin & EthereumEthereum dropped right to its previous high of ~228 – a key level of resistance turned into support and a .618 retracement of its late-May/early-June $294 rally – and immediately reversed higher, surging ~$90 in less than two days.  If the Dollar reverses up before these cryptos can retest their highs, it should usher in another significant decline… a ‘c’ wave sell-off.]

The Euro surged to new highs, negating the potential for an early week reversal back down.  That also delays the timing for an expected drop to ~1.100/ ECU.  More important, however, it provides the Euro the opportunity to reverse its monthly trend up with a June 30th close above 1.1335/ECU.  As a result, that should be a pivotal support point into month-end.

The Yen turned its intra-month trend down while completing an Intra-month Inverted V Reversal lower.  That follows its mid-month, outside-week/2 Close Reversal lower – signaling the likely end of its ~5-week rally.  The Yen is increasing the likelihood that it will wait until July 10–14th – the next phase of a 9-week high-low-low-low-(low?) Cycle Progression – to set its next intermediate low.”


Dollar fails to follow-through higher and sets stage for drop to new lows and down to primary wave target.  Euro signaling higher levels into July as Yen projects drop into July 10–14th.

Bitcoin expected to bounce to ~2650 while Ethereum has nearly reached its rebound objective around 320.  Subsequent drop (into late-July) still expected to take cryptocurrency down to ~1,900/Bitcoin & ~150/Ethereum.  Watch July 5–11th for next significant downturn.

July/August 2017 holds important cycle application to Bitcoin… and could spell additional trouble for cryptocurrency.

See Weekly Re-Lay & INSIIDE Track for additional analysis and/or trading strategies.