DXY Peak formation on RSI and invalidation level

The U.S. Dollar Index (DXY) , hit (and broke) last week the 3.5 Fibonacci extension level from the market bottom. The last time that happened while the RSI turned sideways above the 70.000 overbought level was in Q4 2014 - Q1 2015. The price then pulled-back to the 2.5 Fib level and stayed neutral until it hit the 1W MA50 (blue trend-line).

However we have to account for the possibility of the pattern following the +27% rise pattern, which gives a top around 113.500. As a result if you take such a trade it would be best to account for an invalidation level exactly on last week's High.



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