Source: Forex Analysis
The Dollar index remains inside the bearish channel and it shows signs of rejection at the upper channel boundary. A new low might be close by. The Dollar is way oversold with glaring bullish divergence signs. Dollar bears need to be very cautious.
Blue lines – bearish channel
The Dollar index remains in a bearish trend. Price is trying to break above and out of the bearish channel. Resistance is at 94 and next at 94.30 by the cloud. As long as the price is below 94.90 trend is considered bearish.
Green rectangle – long-term support
The weekly chart shows price just above the long-term support and the RSI (5) diverging. The trend remains bearish. The dollar is oversold in the short-term and a bounce is long overdue. Bears must be very cautious as a Dollar bounce could be very strong back towards 97.
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