DXY Flashes of a correction. Ready to sell?

The U.S. Dollar Index (DXY) has formed Lower Highs following the October 03 High and is approaching the 1D MA50 (blue trend-line), which is the first level of Support and has been intact since August 10. This pattern started after the 1D RSI formed Lower Highs (September 27 and October 03), while the index was still on Higher Highs, thus a Bullish Divergence. The October 03 High is technically a Higher High on a 10-month Megaphone pattern.

The same RSI Bullish Divergence emerged during the previous two tops (March 08 and May 31) and all produced a Channel Down that broke below the 1D MA50 and later made a -4.80% extension. As a result, we consider this still an early strong sell opportunity. This time however we also have the 1D MA200 (orange trend-line) posing as a Support, so consider taking profit there if you see a bounce and candle closing above it.

Thus, Target 1 is 103.650 (1D MA200), which is slightly above the Megaphone's pivot (has made numerous bounces both as Resistance and Support) and Target 2 is 102.350 (3.0 Fibonacci extension), which is slightly above the -4.85% projection.

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