U.S. Dollar IndexShort
The DXY is currently in a critical position
appears to be forming a harmonic pattern. Based on AB = 50% and BC = 161.8%, we expect the DXY to reach the D Point, where a significant reversal or continuation of the trend could occur.
AB Leg: The DXY retraced 50% Fibonacci retracement, confirming a solid start to the harmonic structure.
BC Leg: The second move (BC) extended to 161.8% Fibonacci extension, which is a key level for harmonic confirmation.
DC Leg:
We are now waiting for the price to reach D Point, likely around a Fibonacci retracement level such as 78.6% of XA.
Once it hits that level, we can expect a strong reversal or a continuation of the trend depending on the market behavior.
What to Expect?
If the DXY respects the D Point, we could see a major reversal (USD either gaining strength or weakening, depending on the direction).
If the DXY breaks above D Point, the harmonic pattern will fail, and the trend could continue in its current direction.
Where to Watch for Risks:
Look for confirmation signals like divergences or candlestick patterns at the D Point to avoid entering a failed trade.
The DXY is currently in a critical zone, so wait for confirmation before taking action. Be cautious of a breakout above the PRZ (Potential Reversal Zone)!
AB Leg: The DXY retraced 50% Fibonacci retracement, confirming a solid start to the harmonic structure.
BC Leg: The second move (BC) extended to 161.8% Fibonacci extension, which is a key level for harmonic confirmation.
DC Leg:
We are now waiting for the price to reach D Point, likely around a Fibonacci retracement level such as 78.6% of XA.
Once it hits that level, we can expect a strong reversal or a continuation of the trend depending on the market behavior.
What to Expect?
If the DXY respects the D Point, we could see a major reversal (USD either gaining strength or weakening, depending on the direction).
If the DXY breaks above D Point, the harmonic pattern will fail, and the trend could continue in its current direction.
Where to Watch for Risks:
Look for confirmation signals like divergences or candlestick patterns at the D Point to avoid entering a failed trade.
The DXY is currently in a critical zone, so wait for confirmation before taking action. Be cautious of a breakout above the PRZ (Potential Reversal Zone)!
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