Red lines- bullish channel
The Dollar index finds itself under pressure at the end of the week. Is this profit taking after a parabolic rise or the end of the long up trend? Technically medium-term trend remains bullish and short-term trend is showing signs of weakness, with no indication that a major top is in. Could a major top be in?Yes it could. In a past analysis we talked about the parabolic rise and the warning signs by the RSI, pointing to a weakening bullish momentum. The Dollar index is inside the bullish channel as shown in the daily chart above. The index is most probably going to pull back towards the lower channel boundary around 105-104.50. There we will see the big test of the trend. Bulls better be patient and wait to see how price reacts when and if we reach the lower channel boundary.
