The Dollar index technically remains in a bullish trend. However as we mentioned in previous analysis, price has reached a very important resistance area at the upper channel boundary. The upside potential for the Dollar index is limited and that is why I believe it is more prudent to be neutral if not bearish at current levels.
Blue lines- bullish channel
I believe that at current levels it is justified for the Dollar index to at least make a pull back towards the lower channel boundary around 96-97. The RSI on a weekly basis has already provided a bullish divergence signal. With price turning lower from the upper channel boundary, this rejection at resistance is an added sign that the up trend might be over for the next few weeks. Bulls need to be very cautious.
