Technical analysis on USDX for July 4, 2018
The Dollar index is making higher highs but with the RSI diverging and a bearish wedge being formed, I’m not bullish about the Dollar. On the contrary I remain a seller of the Dollar, expecting at least a pullback towards 92-91.
Red line – support
Magenta lines – bearish divergence
Despite the new highs above 95, the RSI does not confirm them. This bearish divergence is an important reversal signal after the huge run up from 88 to 95.50. It is time for the Dollar to weaken. The US Dollar is set to move towards 92-91. Support is at 94.15 and next at 93.20. Resistance is at 95.35 and next at 95.55.