$DXY is making a Head & Shoulders pattern on the 4H chart with the neck line being around ~106.4.
If this pattern plays out as expected i.e. breaks below ~106.4 we may see the Dollar head lower to its measured objective to around the 103.65 area. If this happens, we may see the rally continue in the general markets.
Keep in mind that there are two levels of support before it reaches its measured objective. One around the 105.65 area and the other one around the 104.9 area.
Next weeks Fed meeting is expected to raise interest rates by 75bps and if that happens I don't think the market would be shocked. However, if they raise the rates by a full 100bps we may be in for some turbulence.
None the less, we shouldn't try and enforce our beliefs on the market but instead see how it reacts to the news and then act accordingly.
That being said, I'm not short at the moment and am waiting for a confirmed breakdown of this pattern.
DYDD
If this pattern plays out as expected i.e. breaks below ~106.4 we may see the Dollar head lower to its measured objective to around the 103.65 area. If this happens, we may see the rally continue in the general markets.
Keep in mind that there are two levels of support before it reaches its measured objective. One around the 105.65 area and the other one around the 104.9 area.
Next weeks Fed meeting is expected to raise interest rates by 75bps and if that happens I don't think the market would be shocked. However, if they raise the rates by a full 100bps we may be in for some turbulence.
None the less, we shouldn't try and enforce our beliefs on the market but instead see how it reacts to the news and then act accordingly.
That being said, I'm not short at the moment and am waiting for a confirmed breakdown of this pattern.
DYDD