Technical analysis of USDX for May 9, 2018

The dollar index continues its up trend higher without any significant pullback. The index is clearly making another bearish divergence, increasing the chances for a big reversal soon. As said at the start of the week, I expect the dollar index to top and reverse this week. I continue to believe so, expecting at least a pullback towards 92.


Blue lines - bullish channel

Blue downward sloping line - bearish divergence

The dollar index is trading inside a bullish channel, making higher highs and higher lows. The new highs are not confirmed by the RSI which is diverging. Support is found at 93 and next at 92.35. So, bears will first need to break below 93 in order to get reversal signs. I'm bearish on the index.

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