Is the USD getting ready for another major move ?

The US Dollar Index daily chart has been range bounding for a while after falling as a result of a bearish Head & Shoulder pattern. This range bounding action has been confirmed by the falling and now flat ADX indicating there is no trend in this market. And please take note the Bollinger Band has been squeezing tighter. If you have been following this blog, you would know I usually get very excited whenever I see the BBand squeeze as it is the classic pattern forewarning us that the market will be blow up or down violently soon which can bring us in some handsome profit if you get ready for them.

As any student of BBand will tell you, it does not tell us which direction will the blowing will be, so we would have to look at other indicators to smell out the clues. At this moment, the Stochastic has truned negative but the MACD remains positive and turning closer to its zero signal line. But the D- is still above D+ so at this moment, I would still remain bearish.

I have drawn 2 horizontal lines to marke out its recent range, so any breaking up above it or breaking down below it should be our new signal.