By Johan Kriek (jkriek@fxinstructor.com)

I recently opened a 1 Hour chart on the Dollar Index (DX) and to my surprise, saw a beautiful price pattern in the form of a Broadening Formation

Broadening Formations, also known as a “megaphone”, can be identified by joining a series of higher highs and lower lows. These patterns are highly unpredictable but we do know that when the breakout occurs, the resulting move will be very volatile and far reaching

Have a look at the chart below:

I have a seen in recent years that a broadening formation that looks like a reversed triangle are known as Orthodox Broadening Formations and CAN OCCUR AT THE END OF A BEAR TREND. Therefore I foresee a possible breakout of the DX to the upside

The means alot of EUR, GBP, AUD etc weakness and alot of Dollar strength. Lets see how this one pans out.

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Good Luck

Johan Kriek