I am inclined to agree with you. My reasoning is both technical and fundamental. From a technical perspective, if entering a short based off an H&S price pattern, a conservative placement for the stop loss would be above the right shoulder. The H&S would generally be considered invalidated above that level. In this case, the top of the right shoulder also coincides with the resistance you have identified at 105.625. This confluence adds further weight to the invalidation of the H&S at that level. From a fundamental perspective, the ongoing resilience of the US economy permits the FED to continue its hawkish approach to monetary tightening via further rate rises in order to bring down inflation. To the extent that other economies are unable to keep pace, then the relative strength of the dollar will remain bullish. Just my opinion - NFA.
I am inclined to agree with you. My reasoning is both technical and fundamental. From a technical perspective, if entering a short based off an H&S price pattern, a conservative placement for the stop loss would be above the right shoulder. The H&S would generally be considered invalidated above that level. In this case, the top of the right shoulder also coincides with the resistance you have identified at 105.625. This confluence adds further weight to the invalidation of the H&S at that level. From a fundamental perspective, the ongoing resilience of the US economy permits the FED to continue its hawkish approach to monetary tightening via further rate rises in order to bring down inflation. To the extent that other economies are unable to keep pace, then the relative strength of the dollar will remain bullish. Just my opinion - NFA.