21.12.201921:01 Forex Analysis & Reviews: Dollar index weekly analysis

Long-term review

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The Dollar index has made no real progress for the last year as price is again where it was at the end of 2018. Price is stalling around a major Fibonacci retracement, with weakly bearish divergence signs.

Red lines - bullish channel

Blue line - bearish divergence

The Dollar index is trading inside a bullish channel since mid 2018. Price has not broken the lower channel boundary that was recently tested. This is a sign of strength on behalf of the bulls. However we should not ignore that the RSI is diverging and we are at the major 61.8% Fibonacci retracement level. This is a potential reversal area so we need to keep a close eye on last week's lows. Holding above it will be a sign of strength for bulls. Breaking below it will be a big win for bears.

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