I was just checking this weekly graph of the Dollar Index (DXY) and I just saw a divergence on RSI and price action. As we can see, the US Dollar is making a new high this week BUT the RSI is now. Actually, the RSI made his high few weeks ago.
This is a signal that the current trend is getting into the final steps of the current trend, this does not mean that he will reverse hard to the downside, BUT we can expect a correction near.
Also, the high of this week came into 92.52, very close to the 2005 high, which is at 92.63. Keep this level in mind as can become a big resistance (as 92.50 has been from Thursday).
NOW, the monthly chart of the DXY (Dollar Index) has also reached an important level.
As we can see the graph above, it reached the 0.236% fib which served as resistance in November 2005.
Good Luck!
By Thiago Duarte
Chief Strategist at Duarte Investment Group
thiago@duarteinvestmentgroup.com
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