Blue lines- bullish divergence
Red line -resistance
In our previous analysis on the Dollar index we emphasized on the fact that although the index was making new lows after the lower than expected US CPI, the bullish divergence was signaling that a bounce was imminent. The Dollar index is bouncing higher but price remains inside the downward sloping wedge pattern. Technically trend remains bearish as price continues making lower lows and lower highs. Resistance by the red trend line is at 104.75 and as long as price is below this level, we expect to see lower lows towards 103.
