Patterns In The US Dollar Index!

Hello Traders Investors And Community, welcome to this analysis where we are looking at the US Dollar Currency Index 12-hour timeframe perspective, the patterns formed in its established downtrend, the current pattern forming which can alter the dynamic, what the index needs to show to alter the dynamic and how possible outcomes can look like. The index is still trading in a well-established downtrend forming one bearish formation after another, in such downtrends is a big question sophisticated traders should ask us when these downtrends ending because they can't go on forever as the relative strength dynamic getting in the oversolid region and the price normally reverses sooner or later such a possible reversal I detected also in the index now where I found the importances we should take into consideration for further possible outcomes and how they can show up like.

Looking at my chart you can watch there that the index is building a possible bullish reversal formation since a long time now which can possibility to reverse the dynamic and turn the established downtrend into bullish , in this case there are some importances which need to be fulfilled in order to show up with the complete confirmation, once it is the breakout of the upper boundary of the possible ascending channel to the upside which does not necessarily mean the index will completely continue bullish to the upside as there is still the primary resistance-line lying marked in blue within my chart, where the index has to show if it can move above the resistance or bounce back again, when the index shows up with this there is the secondary resistance-line which also needs to be taken out, when this happens the structure can be confirmed into the bullish range above the last resistance line.

Sometimes such formations can also invalidate to the downside, in this case, we are speaking of a fake descending-channel-formation, this will happen when the lower boundary is completely broken to the downside with a volatile bearish move, therefore it is from high importance to wait on the proper confirmation of the triangle before moving in the direction. When the index does not show up with the proper confirmations a higher possibility is given for continuation to the downside confirming into lower levels in the range, we will see how this will play out and how the index will develop next times, especially when considering new volatile movements entering the market regarding corona increase again which already provided high volatility this year this can lead to some volatility where the index goes into the opposite direction like other antyciclical assets like stocks.

In this manner, thank you for watching, support for more market insight, all the best!

Information provided is only educational and should not be used to take action in the markets.