- November 15, 2022
- Posted by: Tradingshot Articles
- Category: Forex
The U.S. Dollar Index (DXY) eventually made the bearish break-out we expected as it broke below the Bullish Megaphone pattern that it has been trading in since January 2022:
As you see, the break below the 1D MA100 (green trend-line), which was almost on the bottom (Higher Lows trend-line) of the Bullish Megaphone, was supporting this bullish pattern since June 16 2021! Naturally its break-out has been a major event and the price almost reached the next MA in line, the 1D MA200 (orange trend-line).
We now see the price rebounding and it shouldn’t come as a surprise as it hit exactly the 1.785 (blue) Fibonacci extension from the last low. Also there is the (green Support Zone) to consider from the May 13 High.
As a result, we expect a rebound to test either the 1D MA100 or 1D MA50 as Resistances and accumulate more sellers. A closing below the 1D MA200, would be a bearish continuation for us, targeting the 101.300 (May 30 Low).