Good morning traders! It's the last day of the week and month, and maybe a profit-taking day, so stocks could see new pullbacks, while USdollar can stay bearish, but carefully ahead of PCE Price Index later, because we may not see straight lines. DXY is sharply down again on the intraday basis, so bears are still here and DXY can be actually looking for wave »iii«, however, keep in mind that GAP from May 18 is still open, so we may still see some intraday sideways price action and bigger intraday abc recovery for wave »ii« before a bearish continuation.

Looking at the intraday USDollar Index – DXY chart, we see a leading diagonal formation, so we are tracking now an intraday abc correction before a bearish continuation, thus keep an eye on GAP from May 18 around 101 level that can be filled and may act as a resistance before a bearish continuation.

For a detailed view and more analysis like this, you may want to watch below our latest recording of a live webinar streamed on May 26 2025: