The Dollar index is trading around 98.60 after making a double bottom around 97.70. Since the Dollar index reached the upper channel boundary around 99.30-99.40, we turned neutral expecting a reversal. So far price made two pull backs towards 97.70.
The Dollar index continues to trade inside the bullish channel. As we mentioned in previous posts, because of the bearish divergence in the RSI and the proximity to the upper channel boundary, at current levels we believe the upside potential is limited and we prefer to be neutral. Support has been confirmed at 97.70. Failure to hold above this level will lead prices lower towards the lower channel boundary.
