$Index AB=CD, (C confirmed) Falling Wedge
Updated
In my last idea about DXY (see related ideas), I proclaimed that we might have the possibility of the formation of AB=CD pattern owing the accumulating Falling wedge. But we had a variable of point C in AB=CD, we did not know where/when it might appear. After the false break low on Friday and the rejection from bottom it turned out to be a perfect hammer on Daily candle. For now, as a result of the third failed attempt to break the wedge we recognize 107.3 as point C.
We can now expect DXY to finally break high and linger on to the yearly resistance one more time. Breaking higher than the red line (109) we will be one step forward to be expecting 112, which is the target price for the AB=CD pattern.
Monday open is likely to occur above the wedge so we are beyond the point where DXY might break lower, for now. However, the only variable that remains is the result of the yearly high resistance at 109. If the price manages to break through it, we sure can expect 112 in the succession.
Triggers for the move:
1- Hawkish FEDs
2- Result of Jackson Hole Symposium
3- Expected Interest rate hike in September 2022 by The Federal Reserve
We can now expect DXY to finally break high and linger on to the yearly resistance one more time. Breaking higher than the red line (109) we will be one step forward to be expecting 112, which is the target price for the AB=CD pattern.
Monday open is likely to occur above the wedge so we are beyond the point where DXY might break lower, for now. However, the only variable that remains is the result of the yearly high resistance at 109. If the price manages to break through it, we sure can expect 112 in the succession.
Triggers for the move:
1- Hawkish FEDs
2- Result of Jackson Hole Symposium
3- Expected Interest rate hike in September 2022 by The Federal Reserve
Note
Falling wedge broken high now we wait for the decision of yearly resistanceNote
We are above the yearly high, but I would like to see a daily candle opening above it for the confirmationNote
We are having a daily candle with a gap, it might fill it first before going further high, but it might be supported by our 109 level.
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