There is an almost constant drumbeat of analysts and commentators who are calling for the collapse of the Dollar ( and by extension, a huge increase in the value of gold ). However, if the above chart labelling is correct, the Dollar may have completed a large flat correction which will lead to the largest rally since 2008. While ideally, the Dollar index would fall below the wave 3 of C and A lows, it is not an absolute requirement. The current 5th wave may be a truncated 5th wave.
Currently, the % of Dollar bulls as measured by the Daily Sentiment Index is less 7%. Such low levels of bullishness are often associated with significant bottoms.
A turn here in the Dollar would likely mean gold and oil are ready for a fall. As far as the stock market is concerned the correlation is less certain. At this point, I do not think a Dollar rally would derail the market, but we will have to wait and see.
It will take a sustained move back above the 80 level and a breakout above the trendline to confirm the bottom is in.