DXY - Reversal or retracement?

Hey guys, one chart I am very interested to monitor closely next week is DXY which is the US dollar index.

It measures the USD against a basket of other currencies and is the most widely used chart by traders to determine the strength of the USD.

You can read more about it here --> en.wikipedia.org/wiki/U.S._Dollar_Index

Hourly Chart Comments

I see DXY getting supported at 100.66. This level has been tested many times.

I also see a potential head and shoulders pattern which will be completed only when the support around 100.66 is broken.

Price is now trending along a downsloping channel.

How I will trade it

I will wait for a bounce off the yellow zone to the top of the channel.

Wait for the price to break the yellow zone, and short on a pullback.

If price does not break the yellow zone, remain bullish on USD.

Reversal or retracement?

I will consider this a deeper retracement instead of a full fledged reversal on the USD.

Short term bearish, long term bullish.

The support around the 99 level will be a good profit taking level for shorters.

Trade closed manually:

Price bounced off yellow zone as analyzed but did not reach 99.

It went down to 99.40 and flew up on interest news release.

As mentioned, my shorts are very short termed and USD is looking as bullish as ever.

Now look to buy low on USD to ride the trend.