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 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 and will continue even further out
Those three 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.