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FX.co ★ Weekly bearish RSI divergence in the Dollar index.

Weekly bearish RSI divergence in the Dollar index.

Weekly bearish RSI divergence in the Dollar index.

Purple lines -bearish RSI divergence

The Dollar index made a weekly high at 109.26 at the beginning of July. On a weekly basis trend remains bullish as price is making higher highs and higher lows. However the RSI did not follow price and did not make a new higher high. Instead the RSI made a lower high and has turned below 70 once again. This is not a reversal signal but an important warning that should not be ignored. This is a sign that the upward momentum is weakening. This could be an early sign of a major top under formation. A new weekly higher high is still in play. Bulls remain under control of the trend. But they need to be very cautious.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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