Appealing chart patterns visible on the DXY
The recovery from daily support at 95.84 and daily AB=CD pattern completion at 96.16 (the latter is regarded as a basic bullish configuration among harmonic traders) has placed price action within close proximity to daily supply at 98.18/98.65. Traders will also note the recovery is establishing what appears to be a bear flag between 95.72/97.45.
98.18/98.65 remains an influential area, housing the 200-day simple moving average at 98.32, a 38.2% daily Fib level at 98.51 and a 127.2% daily Fib ext. level at 98.31. The aforesaid 38.2% Fib level also represents a common initial take-profit target out of the recently completed AB=CD pattern.
In addition to the above (as featured in recent weekly reports), late May witnessed price push through the lower limit of a large bearish pennant configuration (98.27). Traders following this pattern, therefore, may still acknowledge the possibility of moves eventually forming as far south as 93.97: the pennant take-profit target, measured by taking the preceding move and adding the value to the breakout point (yellow).
98.18/98.65 remains an influential area, housing the 200-day simple moving average at 98.32, a 38.2% daily Fib level at 98.51 and a 127.2% daily Fib ext. level at 98.31. The aforesaid 38.2% Fib level also represents a common initial take-profit target out of the recently completed AB=CD pattern.
In addition to the above (as featured in recent weekly reports), late May witnessed price push through the lower limit of a large bearish pennant configuration (98.27). Traders following this pattern, therefore, may still acknowledge the possibility of moves eventually forming as far south as 93.97: the pennant take-profit target, measured by taking the preceding move and adding the value to the breakout point (yellow).
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