Possible diamond pattern on DXY 3hour chart

Updated

A diamond top is often times more likely than a continuation diamond but when you’re on as small a time frame as the 3 hour the exception tends to happen way more often than on longer time frames meaning all bets are off on which way its going to break until it confirms.

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If this pattern were somehow able to breakdown in the next few 3hr candles then the target would take it to the exact location of the 3hr chart 200ma (in blue). It is currently around 107.

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Big impulse up above the diamond pattern suggests this will likely be a continuation diamond instead of a diamond top.

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This pattern could also morph into a rising wedge.

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The breakout target for the continuation diamond is 110. Price action is getting very close to reaching that. It did start to form what could have been a rising wedge but seems to be breaking above that now.

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Continuation diamond target has been hit!

DrDovetail

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