I'm not intrinsically a pattern-guy.  I'm fully aware that if I were to seek out a particular price pattern in the market, I would be able to identify those patterns everywhere.  The brain is a very sneaking organ.  That said, if I already have a fundamental macro view (such as a new up-trend in the $DXY), and I begin to spot price action or price patterns that support my narrative, I'll take notice.  This is a very different approach than to seek out price patterns to justify a loosing or wrong position. 

I think the head and shoulders topping formation makes sense to me in support of a short EURO thesis.  If we think about the FO-SHO-BRO dynamic, 2016 was a year with an overly-crowded short EURO trade.   This can now be viewed as the Fake Out (FO).  2017 would have been a year with a "rip your face off rally" if one were short or Shake Out (SHO).  Now that the market has forced those to cover short positions and most likely go long the Euro for a variety of ill-formed and bogus ideas, the time only makes sense to me for the "real" short move to begin in the Euro or the real Break Out (BRO).  

Got popcorn?

P. Franklin, Jr.

* I own in client accounts long US Dollar instruments

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