DXY has finally completed the inverted H/S pattern and is now naturally finding resistance at the base. However as a result, a rising wedge pattern has also formed.
There are a myriad of outcomes that can happen. Price can break downwards as a result of the wedge OR we can find support at the lower TL, retest the base of the H/S then break above to likely test the highs from Nov 2.
Looking at the lower TF, I can see an extended W pattern which goes along with the premise of a test at the lower TL of the wedge...usually extended W's retest to top of the first leg and continues back on its original trend.
This lower level will be a strong infliction point and a good time to look for swing trades both ways.
It's still a bit early to say what will happen, however I have a long bias from a momentum POV unless there is a break of the wedge.
Let me hear your thoughts! Previous analysis linked!
There are a myriad of outcomes that can happen. Price can break downwards as a result of the wedge OR we can find support at the lower TL, retest the base of the H/S then break above to likely test the highs from Nov 2.
Looking at the lower TF, I can see an extended W pattern which goes along with the premise of a test at the lower TL of the wedge...usually extended W's retest to top of the first leg and continues back on its original trend.
This lower level will be a strong infliction point and a good time to look for swing trades both ways.
It's still a bit early to say what will happen, however I have a long bias from a momentum POV unless there is a break of the wedge.
Let me hear your thoughts! Previous analysis linked!
Note
Previous Analysis
Harmonic Butterfly 8H
Harmonic Shark 8H
ABCD 8H
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.