DXY First Rise, Then Fall (Daily Reversal Pattern)

As I expected in my previous analysis about Dollar Index, we saw a big decrease from 93.00 to 92.600

In Daily chart, price is still bouncing on the ascending trend line which acts as a strong dynamic support level.

On the other hand, it seems like price is making a reversal Head & Shoulder pattern and currently it is about to make the right shoulder.

So, I expect a rise from this level to 93.200 which is a resistance level and also is around the left shoulder’s top…then we can expect a rejection from 93.200 to the downside and a breakout on the neckline and the weekly low (92.600) and also on the ascending trend line and a fall to the monthly low (91.800) in the future:
(By the way, we should remember that it is end of the month now and the monthly low which is our long-term target would be different and I will update this analysis later).

What do you think about DXY’s future?
Feel free to share your ideas in the comments.

Yorum: