The Dollar index has made a new high as the bullish reversal after the election day was too strong. However price has reached important resistance area of 99.50. There are bearish divergence signals here and also the rise from 91.90 lows is far from impulsive. This implies that this upward move is part of the correction and not a new up trend.
The Dollar index is testing upper channel boundary. Price touched the cloud support and the lower channel boundary after the elections and is now at the upper boundary. This is resistance area. The RSI is diverging so bulls need to be cautious.
Green line - important trend line support
In the weekly chart we see price testing the upper trading range boundary. 99.50 is important resistance area. A rejection at current levels will push the index towards the Ichimoku cloud and the green trend line support. A break below the green trend line support will open the way for a push towards the lower trading range boundary.
