DXY - 2 Scenarios

The dollar index has 2 likely scenarios. Either it's going to break higher above the 109-109.50 resistance zone, or it's going to break down towards the channel support.

Taking a look at the weekly chart, we can see some fairly strong divergence with price action and RSI. This indication isn't always accurate, so use it with a grain of salt. But my feel is that we might see some bearish action with the dollar in the days ahead.

On the other hand, if we break higher above 109.50, this could expose 110, then 111, and finally arrive somewhere around 1.12 which could be the channel resistance.