Possible H&S on DXY - drop to 0.786 fib and retest support b4 up
Measured move off the potential H&S on DXY points to the 0.786 fibonacci retrace level off the high of the recent rally.
This 0.786 fib level also corresponds with a historical resistance flipped support level that would be retested and if it holds could indicate a continuation to upside.
I expect DXY to hit 115-116 range (which is the 0.5 fib level on reverse fib pull from 1982 ATH to 2008 ATL) in near future before rejection and long term reversal to downside. In 2001, DXY was similarly rejected at the 0.5 fib level (based on ATH and ATL at that time).
If this plays out, it would likely correspond to a short term rally in BTC and then down reversal as DXY recovers off support
This 0.786 fib level also corresponds with a historical resistance flipped support level that would be retested and if it holds could indicate a continuation to upside.
I expect DXY to hit 115-116 range (which is the 0.5 fib level on reverse fib pull from 1982 ATH to 2008 ATL) in near future before rejection and long term reversal to downside. In 2001, DXY was similarly rejected at the 0.5 fib level (based on ATH and ATL at that time).
If this plays out, it would likely correspond to a short term rally in BTC and then down reversal as DXY recovers off support
