FX.co ★ Dollar index daily analysis.

Although the Dollar index started the week with a gap up, price is moving lower. The gap is closed but still above Friday's closing price. The Dollar index remains inside the bullish medium-term channel.

The Dollar index is making higher highs the last 5 months but the RSI does not follow. Even the latest new higher high at 97.71 was followed by a lower high in the RSI providing another bearish divergence. Support is found at 95.55 where the lower channel boundary is found. There are increased chances of a trend reversal and an important top formation. However there is still no confirmation of such a thing happening. Dollar bulls remain in control of the trend.