The Dollar index has reached major resistance levels and levels seen back in November 2018. Price got rejected at these levels and pulled back towards 94.50 so this time it is very important to see what happens. Short-term oscillators show a bearish divergence warning signal but it is too soon to tell what will happen.
Blue lines -bearish divergence
The Dollar index is in a bullish trend. Price is making higher highs and higher lows since mid March but despite making a higher high since early February, the RSI has not confirmed. This is a warning. Not a reversal sign. We know that resistance is strong up here and traders would better be cautious and patient. A rejection at current levels could push the index back towards 95 as price has mainly moved sideways since last November between 94.50-97.40. A break out above the resistance and holding above 97 would open the way for a move towards 100 price level and higher. Major reversal and confirmed rejection will be the case if we see price below 96.40. Until then bulls are in control.
The material has been provided by InstaForex Company - www.instaforex.com