This week we saw the remarkable rise in the US dollar, leaving behind one big gap as it surged closest to the previous peak of a wave 1. The wave 1 peak is the resting place of the bullish trader as they love to jump on the upside bandwagon. All this has to eventually wear out, but I’m hesitant to call a top just yet. We could get a quick short free fall, and then instantly resume this bullish trend. We can go much higher in the short term, but a correction is due. We are on a potential wave 2 rally in Minor degree which will set the tone for the remainder of the bear market.
If the USD crashes in a big 3 wave fashion, then, this could signal that a triangle may be in play, but it would also mean that we are in a “B” wave counter rally in Minor degree which can contain the smaller triangle.