FX.co ★ Dollar index justifies a reversal from current levels.

The Dollar index is at its highs and still inside the medium-term bullish channel as we have mentioned in previous posts. At current levels we prefer to be neutral if not bearish as there are signs that the up trend continues to weaken. The chances of a reversal have increased.

Green lines - bearish RSI divergence

The Dollar index is very close to the upper channel boundary. The RSI continues making lower highs. This bearish divergence is an important warning for bulls. They must be very cautious. Current market conditions justify a rejection and pull back lower towards 98 at least. I prefer to be neutral if not bearish at current levels.