The Dollar Index (DX) has put in a rising megaphone (pink) within a rising megaphone (blue on chart).
DX broke out of the pink rising megaphone without completing a proper head and shoulders top first and promptly began megaphoning. That would usually mean a new high outside the pink rising megaphone.
In addition, DX topped in December/January with exact tags on the blue rising megaphone top. That would usually mean a new high inside the blue rising megaphone before breakout.
Plus the blue rising megaphone now has a beautiful head and shoulders top inside it. Unfortunately, the right shoulder is not a bounce off the rising megaphone bottom. Instead it’s a megaphone right shoulder (navy blue), which would usually mean a new high is coming for the head of a larger H&S top.
It all adds up to a likely new high for DX before a move to the blue rising megaphone bottom. The new high will likely come after another false break of the red H&S neckline.