DXY About to Drop

In my previous analysis, I expected more growth for US dollar index but price could not break the resistance level at 93.50 and after a sharp uptrend, price has entered a slow correction phase and the upside pressure is going to be decreased.

The Yesterday’s candle has been closed below the day before and has engulfed it.

Moreover, we can see a strong rejection on the 4H candle with a high upper shadow which tells us there would be more downside pressure.

Currently, price is bouncing in the rectangle pattern and it seems it is making a reversal H&S pattern.

We should wait for the pattern to be completed and then a breakout on the rectangle.

If price breaks the pattern to the downside, we expect a drop first around 92.68 which is a daily support level and in the case of a downside breakout on this level, the next target would be between (92.30 - 92.12)

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Nothing happened yet!
Still waiting for the rectangle breakout.