DXY is forming an inverted head and shoulder?
DXY seems it is forming a very powerful bullish reversal pattern on daily and weekly charts. The Buy area is just great at this level with a stop loss just below the last low as there would be my personal invalidation line for this pattern. For this pattern to be triggered DXY need to break 106 which is far away from here, but from risk to rewards stand of point it is a great entrance area.
According to my Elliot count, we are heading into the last wave with a target of around 130. The better picture will be posted as an update on the weekly chart.
RSI is close to the oversold area while MACD looks bearish at the moment.
If it breaks below low or my red line I would have to recalculate my count and find where did all this end. In that case, I would say DXY is going for several months/years drops.
Until that happened I am bullish on DXY.
Don't forget FED and USA need strong Dollar to counter inflation because the weak Dollar will make much more problems when inflation is in question.
According to my Elliot count, we are heading into the last wave with a target of around 130. The better picture will be posted as an update on the weekly chart.
RSI is close to the oversold area while MACD looks bearish at the moment.
If it breaks below low or my red line I would have to recalculate my count and find where did all this end. In that case, I would say DXY is going for several months/years drops.
Until that happened I am bullish on DXY.
Don't forget FED and USA need strong Dollar to counter inflation because the weak Dollar will make much more problems when inflation is in question.
Comment:
Yesterday's bullish reversal candlestick pattern Hammer confirmed/increasing the probabilities of my analyses.
Consistency is the key of success....
