US Dollar Index Technical Analysis: Head-and-Shoulder pattern can mean trouble for the Greenback

• The US Dollar Index (DXY) is trading in a bull channel but the price has actually made no progress since late May.
• DXY is forming a head-and-should pattern and although the shape of it is not perfect the bearish dynamics at play remains the same. DXY has still quite a lot of resistance to go through if the bears want to take control: the bull trendline from May 14, 94.43 support (August 28 swing low) and the 100-day simple moving average (SMA). Interestingly, the RSI, the MACD and the Stochastics have turned bearish.  
• A bear breakout below 94.43 is needed to confirm a neutral to bearish bias while a bull breakout above 96.65 would be considered as the resumption of the main bull trend.  

DXY daily chart

Spot rate:                 94.84
Relative change:     -0.32%
High:                        95.28
Low:                         94.73

Trend:                      Bullish
Short-term:               Bearish below 95.65

Resistance 1:         95.00 figure
Resistance 2:         95.24 July 13 high
Resistance 3:         95.52 August 6 high
Resistance 4:         95.65 July 19 high
Resistance 5:         96.00 figure
Resistance 6:         97.00, 2018 high

Support 1:               94.91 July 27 high  
Support 2:               94.43 August 28 swing low
Support 3:               93.71 July 9 swing low
Support 4:               93.17 June 14 swing low
Support 5:               92.24 May 14 swing low