The Dollar index is making new weekly highs. Price remains inside the medium-term bullish channel but it is approaching the upper channel boundary which is resistance. The RSI continues to provide a bearish divergence as it makes a lower high.
Blue lines- bullish channel
The Dollar index has limited upside potential. Although the bearish divergence by the RSI is not a reversal signal, we consider it to be an important warning for bulls that trend is weakening. That is why we continue to believe at current levels we should be at least neutral. The Dollar index remains in a bullish trend but this is not the price level to open new long positions.