The Dollar has retraced towards it Fibonaci level of 61.8% since its high in the beginning of January 2017. It has now found resistance at that level of $97.82, testing it since November 2018.
Simultaneously, there has been an ascending triangle forming. You can see the base taking shape in March 2018. Usually this would imply a bullish breakout waiting to occur.
Also, a number of head-and-shoulder patterns have occurred since the 2017 high. You can see the inverse head-and-shoulders in September 2017, and March-April 2018. These were followed by a bullish upwards trend in the following months. But then there was a recent head-and-shoulders pattern in August 2018, which coincidentally tested the 50% Fibonaci retracement level as its neckline. That neckline served as a support, which could have signaled a downtrend if it was broken through. When that neckline was not breached, DXY ripped upwards, bringing us to the 61.8% retracement level and current resistance.
So we have a Fibonacci retracement , a series of head-and-shoulders, and an ascending triangle. I don't know quite what that is telling me yet, but I will continue to track and monitor.
Please share with me any comments or feedback!
Simultaneously, there has been an ascending triangle forming. You can see the base taking shape in March 2018. Usually this would imply a bullish breakout waiting to occur.
Also, a number of head-and-shoulder patterns have occurred since the 2017 high. You can see the inverse head-and-shoulders in September 2017, and March-April 2018. These were followed by a bullish upwards trend in the following months. But then there was a recent head-and-shoulders pattern in August 2018, which coincidentally tested the 50% Fibonaci retracement level as its neckline. That neckline served as a support, which could have signaled a downtrend if it was broken through. When that neckline was not breached, DXY ripped upwards, bringing us to the 61.8% retracement level and current resistance.
So we have a Fibonacci retracement , a series of head-and-shoulders, and an ascending triangle. I don't know quite what that is telling me yet, but I will continue to track and monitor.
Please share with me any comments or feedback!