DXY bullish possibility on megaphone pattern support
Taking a looking at DXY, have price coming down to support.
Bearish case is that the most recent move up has sputtered out and had less momentum. The downside potential here is very big if price breaks down from the megaphone pattern.
However, looking on a daily, price is well outside lower Bollinger band at the same time that price will arrive on support of megaphone pattern. For my trading strategy, I like to see as many good cases occur simultaneously. In this case we have three.
Those three bullish cases together spell for me that a major rip up will occur before any real down move takes place on the DXY. See this chart for a close up view.
Bearish case is that the most recent move up has sputtered out and had less momentum. The downside potential here is very big if price breaks down from the megaphone pattern.
However, looking on a daily, price is well outside lower Bollinger band at the same time that price will arrive on support of megaphone pattern. For my trading strategy, I like to see as many good cases occur simultaneously. In this case we have three.
- price is converging to support of megaphone pattern
- price is converging to support of daily channel
- price is already below lower bollinger band and will continue even further out
Those three bullish cases together spell for me that a major rip up will occur before any real down move takes place on the DXY. See this chart for a close up view.
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Update, DXY retested break of the megaphone and is now about to drop through next level.