Dollar Invalidates a Bullish Structure

The US Dollar index crashed through the local low putting into doubt the long term count we've relied upon for over a year. The next probable market action on the daily chart sports an impulsive A wave down from the September 2022 high. The index spent the time between February and October 2023 carving out an expanded flat B wave. Since wave B ended in October, the index is about to finish a first wave decline in wave C. Wave 2 will follow over the next few months but will only result in a correction to the decline. Expect a larger zigzag formation to complete before the dollar can sustain a bullish rally again.