The Dollar index made a new high at 98.84. The trend remains bullish but as I have been saying for the last couple of sessions, bulls need to be very cautious as a trend reversal is very close. I continue to believe that the Dollar index is about to make an important top soon.
Blue lines - consolidation range
Green lines -bullish channel
The Dollar index has broken out of the consolidation range and made a new high. However the RSI did not make a new high providing another bearish divergence. There is no trend reversal confirmation but only a warning for bulls.
Red line - long-term resistance
The Dollar index remains in breakout mode heading towards the long-term resistance level of 99. Trend remains bullish. A back test towards cloud support should not be canceled. This could happen after we see a rejection at the 99 resistance area. Overall I believe this is not a good risk/reward level to be buying the Dollar index.
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