The US dollar bulls might still be in control of the trend, but momentum is declining. I would expect more enthusiasm once we have broken above the recent high, but it seems a correction is needed there first before more buyers can make a real push above the level of 100.
Red lines - stochastic bearish divergence with new highs
The US dollar index remains in a bullish trend as the price is above the Ihcimoku cloud and above both the tenkan- and kijun-sen indicators. Also, the price is trading inside a bullish channel. However, bulls need to be very cautious as we observe divergence signals in the stochastic.
No change are seen in the weekly chart. Support is found at 98.75. If it gets broken, we expect a pullback towards the kijun-sen (yellow line indicator) and towards the 38% Fibonacci retracement. The trend remains bullish. The price is still above cloud. However, bulls need to be very cautious and protect their positions.
