WayAtTheEnd
Short

Couldn't be more bearish on DXY

TVC:DXY   U.S. Dollar Currency Index
I've been talking a lot lately about a head and shoulders inception situation with DXY . Everything in this chart happens within a H&S on the weekly, and until it was just invalidated, I was watching a third that I just deleted when I cleaned up the chart a bit(but perhaps not enough). Aside from the H&S patterns, there was bearish divergence on the 2H with the RSI between Sep 28 and Oct 3, a bearish pennant in the short-term that was invalidated, but I consider it very worthwhile to take bearish TA on the way up into account and consider the targets almost like magnets. The target of the pennant has yet to be hit, but I think it will be sooner than most people realize is possible in forex. A double top here would create new bearish divergence in the shorter-term as well as create a new bearish target, obviously. Long-term resistance on the RSI is clearly visualized... should be quite interesting whatever happens here...
Comment: correction: "sooner than most people thought is possible in DXY"... of course I realize not every fiat currency has the stability that the dollar does. Maybe not any. So far I've barely paid attention to anything outside of crypto except a few stocks, DXY, EUR/USD and occasionally a couple others experiencing hyperinflation. Anyway, the point is I expected it to be an abnormally steep decline for DXY until the bearish pennant target. Perhaps much deeper than that but I'd have to see how everything looks then.
Comment: A new short-term H&S pattern with a target that matches a preexisting support line I had drawn...

From my EUR/USD update: "Seeing the American stock market finally go bearish according to my charts today is a good sign to me that the short-term bullish shark was most likely the medium to long-term bottom for EUR/USD(and that DXY is likely to keep coming down along with it as I've been foreseeing)."

https://s3.amazonaws.com/tradingview/sna...
Comment: whoops... wrong link above... wish TV would give us a few minutes to edit comments too... here it is.
Comment: It violated the blue H&S pattern and created a double top instead. Not much changes except "adjusted H&S target" is now "double top target" as they line up pretty much perfectly. Confirmation of the double top is around 93.80, when it breaks the low from Sep 21. Here's what my short-term chart looks like now. Still bearish AF and expecting a lot of the capital to flow into BTC.
Comment: Bearish crab on the hourly chart. EUR/USD is remaining supported at a key 1.618 extension while DXY is hanging on at the PRZ for now, stubborn and reluctant to double-top.

Comment: Broke down from another short-term H&S, currently forming a little bear flag

Comment: EUR/USD seems to have finally bottomed out again at a medium-term 1.618 extension, increasing my confidence that the dollar is about to finally start showing it's weakness even though the American stock market is having a bad day. The last short-term H&S I posted a couple days ago is now a short-term double-top instead if it goes as I believe it should. No less bearish unless it breaks 97.18.
Comment: Bearish cypher pattern over the last week or so
WayAtTheEnd YungSwan
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WayAtTheEnd YungSwan
@YungSwan, And this... both of these patterns take place over a much more significant period of time and thus are more likely to be significant to the price action.

Dahlin: "What most people are betting their money on (the 90% who loose)"


Also from Dahlin's comments on this chart:
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