FX.co ★ Dollar index weekly analysis.

The Dollar index as expected is making new weekly lows. As we mentioned in previous posts, with the index close to the upper channel boundary and with bearish RSI divergence signals, around 99 we preferred to be neutral if not bearish.

The upside potential in the Dollar index is very limited at current levels. The risk is to the downside and we prefer to be neutral or bearish. The Dollar index is expected to make a move towards the lower channel boundary. At this lower boundary support is found at 96. Short-term trend is changing to bearish. Weekly trend remains bullish but there is danger of a 2 point pull back.