In my post last week on Dollar Index revealed Weakness, I was anticipating a possible downturn of the Dollar Index. Yet last week’s Price Action has invalidated the Head and Shoulder chart Pattern on the 4 Hourly chart .
In fact, the chart pattern has now evolved to a possible Double Top formation on the daily chart, which again signals to a possible bearish reversal for the Dollar Index.
Dollar Index Daily Chart
What interests me is the second top formation seems to have a head and shoulder pattern too, with the right shoulder in the midst of forming. This again enhances the bearish view.
On a shorter term, looking at the 4 hourly chart below.
4 Hourly Chart of Dollar Index
It seems that USDX is moving within an downward equidistant channel. Thus, speculators might find it attractive to short near the top of the channel whenever possible.
