DXY/USD ~ Flat Bottom Pattern + Inverse H&S (15min)
U.S. Dollar Currency IndexTVC
Description
⋅ TVC:DXY developing flat bottom pattern after rejecting upper parallel channel + potential inverse H&S pattern, TBC.
Inverse H&S Playbook (Long):
- Break above 200MA/38.2% Fib/descending trend-line confluence
- Reject 50% Fib/overhead supply (white box) confluence then bounce off 38.2% Fib to create the "Right Shoulder"
- Re-test & break (hold) above overhead supply confluence to activate inverse H&S pattern
- TP 1st target = ~107.70-108 21st Nov 2022 wick top/supply (red box)
Inverse H&S breakout also coincides w/ break above ascending parallel channel.
Flat Bottom Bear Break Playbook (Short):
- Break below horizontal "Flat Bottom" line to re-test middle trend-line (dark blue/dashed)
- Failed re-test of Flat Bottom &/or middle trend-line validates Bearish price action
- Moving averages (esp. 200MA) act as dynamic resistance, pushing price action towards lower parallel channel
- TP 1st target = ~106-105.70 (green box)