DXY Over recent sessions, I’ve been highlighting a critical zone for the
DXY between $98.70 and $98.80, where several important technical patterns are forming that could signal the start of a rebound after the recent decline.➡️ The dollar broke below the Head and Shoulders neckline at $100.27, hitting the default target I projected at $98.69, which corresponds to the 200% Fibonacci extension. This is a classic confirmation of the breakdown and subsequent drop.
➡️ However, since reaching this level, the
DXY has begun to form strong bullish patterns:Bullish Crab Pattern at the 161.8% Fibonacci extension, projected at $98.91
Bullish Alt-Bat Pattern at the 113% Fibonacci extension, at $98.80
These emerging bullish setups suggest a solid potential reversal, indicating that the
DXY might be preparing to recover.🎯 The default targets for these bullish patterns are around $99.95, aligning with key resistance zones and Fibonacci confluence.
Summary: The
DXY has completed the expected downward move from the Head and Shoulders pattern and is now showing clear technical signs of a possible reversal. The price action in the coming sessions will be critical to confirm whether the index can sustain this recovery toward higher levels.Safe Traders,
André Cardoso
Harmonic Patterns | Market Analyst | Forex Analytix | Porto, Portugal
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Harmonic Patterns | Market Analyst | Forex Analytix | Porto, Portugal
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.