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U.S. Dollar Index

DXY/USD ~ Bullish Reversal / Inverse H&S (1H)

By BlueHatInvestor
Updated
DXY chart mapping/analysis.

Bullish inverse H&S identified on lower timeframe charts, pending breakout confirmation.

Trading scenarios into EOY:
  • Inverse H&S breakout = extrapolated move into 23.6% Fib / ~106 horizontal line (yellow dashed) / upper range of descending parallel channel (light blue) confluence zone.
  • Breakout failure = re-test 50% Fib aka "Right Shoulder".
  • Further bearish capitulation = re-test lower range of ascending parallel channel (white) / Golden Pocket confluence zone.
  • Major macro economic news this week = higher probability of implied volatile swings in either direction.
Note
DXY chart update (Thurs 14/12):
  • JFC, DXY got absolutely wrecked post-FOMC.
  • Inverse H&S invalidated - dump straight down (overextended?) to lower range of ascending parallel channel (white) & into Golden Pocket.
  • Quick reversal to re-test parallel channel break - possible move higher to fill ~102.90 gap, consolidate around 61.8% Fib, or break below ~102.4 wick low to continue dumper, TBC.
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BlueHatInvestor
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