Sunday, May 19, 2024

The bat enters the cave - a combination of a harmonic pattern and a technical pattern

 The Dollar index expects a sharp adjustment after a long period of standing still. A combination between an expanding triangle pattern and a Bat-type harmonic pattern that is trapped inside it gives us a big clue about the expected direction of the most important index in the world.

The index is currently calculated by six foreign currencies, which include the EUR, JPY, CAD, GBP, SEK and CHF. The euro is, by far, the largest component of the index, making up 57% of the basket. 

Attached is a weekly graph of the dollar index showing the possible scenario:




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