The Dollar index is making higher highs and higher lows but the stochastic oscillator is not making higher highs. This is a sign of the bullish momentum weakening. This is a warning sign for bulls. Bulls need to be very cautious and raise their stops.
Red lines - bearish divergence signs
The Dollar index is still trading above the Ichimoku cloud and inside the bullish channel. Support is at 99.35-99.25. Stochastic oscillator on the 4-hour chart is giving bearish divergence signals. Resistance is at 100.25.
The Daily chart of the Dollar index remains bullish but we should expect a pullback soon as this upward move from 93.80 has extended too much and the daily stochastic has been overbought for too long. Support is at 99-98,75 on a daily basis and a target for the pullback is the 97.50 price level. The long-term trend remains bullish as price is above the Ichimoku cloud.
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