The Dollar index is making higher highs. The price remains in a bullish trend above the Ichimoku cloud. There is a warning bearish divergence sign by the RSI. A deeper pullback maybe towards 90 could come very soon. Bulls need to be cautious.
Black lines - triangle pattern
Blue lines - bearish divergence
The Dollar index is way above the Ichimoku cloud. The trend is bullish in the short-term as long as the price is at 90. This is also my line in the sand for the bullish scenario. Short-term support is at 91 by the 4-hour tankan-sen. Next support is at 90.60 by the kijun-sen. We can still make a higher high towards 91.70 which is our target for so long, but bulls need to be very careful especially if the RSI doesn't confirm the new highs. Dollar bulls should start thinking of decreasing exposure as a deeper pullback towards 90 is now highly probable.
The material has been provided by InstaForex Company - www.instaforex.com
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