FX.co ★ The Dollar index challenges important technical support.

The Dollar index is trading around 92.39. Price is trading around major Fibonacci retracement level which is very common for reversals. Also another technical indicator provides a warning to Dollar Bears.

Red lines- bullish divergence

Green lines -Fibonacci retracements

The Dollar index is in a short-term bearish trend making lower lows and lower highs. The RSI indicator in the 4 hour chart did not follow price to new lows. The RSI made a higher low. This is a warning for bears. This is a bullish divergence. This condition justifies a trend reversal as the downtrend is weakening. Price is also around the 61.8% Fibonacci retracement which is a very common level for trend reversals. Will we see a trend reversal soon? It is justified but so far we have no sign of such a reversal. Only warning and indications of a possible reversal.