The Dollar index has made no real progress for the last year as price is again where it was at the end of 2018. Price is stalling around a major Fibonacci retracement, with weakly bearish divergence signs.
Red lines - bullish channel
Blue line - bearish divergence
The Dollar index is trading inside a bullish channel since mid 2018. Price has not broken the lower channel boundary that was recently tested. This is a sign of strength on behalf of the bulls. However we should not ignore that the RSI is diverging and we are at the major 61.8% Fibonacci retracement level. This is a potential reversal area so we need to keep a close eye on last week's lows. Holding above it will be a sign of strength for bulls. Breaking below it will be a big win for bears.
