Formations are rarely perfect however there seems to be the potential for one being formed for the US Dollar index.
A head and shoulders is a chart pattern that typically happens after a strong rally up.
The first shoulder was formed when the price reached $9530 and this was followed by a decline and a further price rise forming a higher peak at around $9666 (the head). As we can see from the chart the market also found support at the neck line.
The price now should reach a lower high than what was reached for the head in order to have the continuation of the pattern. We will have confirmation of this trend when the price falls below the neck line.
What are your views? Do you think there is potential for this?