Red line -resistance
Blue lines- bullish divergence
The Dollar index has bounced and is trading around 104.60. Short-term trend remains bearish as price continues making lower lows and lower highs. Price has so far tested the resistance trend line twice but we still have no break out. As we mentioned in a previous post, the bullish RSI divergence combined with the wedge pattern, provide a bullish combination. The chances for a reversal have increased. But so far we have no bullish reversal signal. Only indications that we are very close to such a reversal.
