Quasimodo Pattern
Updated
DXY has formed a Quasimodo pattern that is near completion of its right shoulder. Once it crosses ~105.9, expect it to continue up towards ~112.5 and then ~116.
This is the scenario I expect will occur, and I am hopeful that it will take as long as I've drawn but it could occur much more rapidly.
The longer it takes, the better chance we see extended recoveries or bull runs with new ATHs in stock and crypto markets and Gold. Once it gets near previous highs, we could be in danger of a strong bear market.
However there is still a chance for failure which I've accounted for on the chart and described below:
Should it fail the remain above ~105.9, and then fall below ~100.8 a second time, it could instead drop below monthly resistance (not pictured, but around 98-99) and head towards ~94.8 and then ~92.
I've linked some previous / related ideas for DXY and how it relates to markets in the Related Ideas section below.
Note
This might be a more accurate path:Trade active
Weekly closed above the neckline, barely - and is presently re-testing it. Want to see how the weekly closes in a little under 24 hours.
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