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The Dollar index made new higher highs yesterday but the RSI did not follow. The RSI provided the second bearish divergence and this is an important sign of weakness. The Dollar index continues to trade inside the bullish shor-term channel.
Blue lines- bullish channelThe Dollar index has support at 95.50. As long as price is above this level, bulls remain in control of the trend. So far the index has respected the channel support and continues to make higher highs and higher lows. The chances of a reversal have increased, specially after the new bearish divergence, but so far we have no such sign. Bulls continue to consider every pull back as a buying opportunity.
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