dcm2020

Divergence on DXY (Dollar Index)

INDEX:DXY   US DOLLAR CURRENCY INDEX
I was just checking this weekly graph of the Dollar Index and I just saw a divergence on RSI and price action. As we can see, the US Dollar is making a new high this week BUT the RSI is now. Actually, the RSI made his high few weeks ago.
This is a signal that the current trend is getting into the final steps of the current trend, this does not mean that he will reverse hard to the downside, BUT we can expect a correction near.

Also, the high of this week came into 92.52, very close to the 2005 high, which is at 92.63. Keep this level in mind as can become a big resistance (as 92.50 has been from Thursday).

Comments

Hi thaigolgd, nice chart mate. 92.88 is a .236 fib level taken from the highs made in Jan 1985 of 164.72 to the lows made in March 2008 at 70.69 so I would expect some type of reaction. https://www.tradingview.com/e/hFLmgOwp/ Good luck with your trades.
+1 Reply
dcm2020 tuamen
Thats what I am expecting, but dont forget the problems in the UK, Europe and Japan.
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