Dollar Overview Heading Into Q1

This is not the DXY, this a custom Index I use to analyze currency strength. What you are looking at is the performance of the Dollar vs. The 7 Other Major Currencies. If you were to gather all the data on each of those dollar pairs and compile them and average them out this is what the chart would look like. (IMPORTANT -> the index is flipped for some reason, if the instrument is bullish on the chart it is actually weaker in the market.)

So,

Across the board we have a H&S pattern on the Daily chart, I'm not trading the pattern but it is good to be mindful of it. I'm actually looking to go against everyone. My targets will be the previous highs where most people put their stop losses. The market wants liquidity and there is some sitting right at these spots.

We also have a new high that appeared today, if that holds then we have a break in structure and could see climbs higher.

My main target is going to be that second green line up top.

But we need to see how things play out in the next week.

If everything happens perfectly I'm looking for the Dollar to reach target before April. Which means a Bearish Q1.

What do we do now? We observe, and look for other currencies that will be getting Bullish through Q1.

Then pair them with the dollar. This will increase your success rate on trades.