View: US Dollar Weekly LOG.png

US Dollar Weekly Log: Will resistance become support? 

I've been looking at the longer term view of the dollar. You can see that price has broke out above the major long term down trend line (dashed black line) which is usually quite bullish . But also there is a major long term negative reversal in the RSI followed by a bearish divergence. This combination often (but not always) is quite bearish. If you are bullish you should expect the return of price to the trend line to be support and then further rise in the dollar (the kiss and run scenario)  

Personally I favor a more bearish possibility that we are completing a very large sideways consolidation before a final crash. ( I have a similar view for gold and silver but with a final bullish rise.) If this is correct we will see price going below the dashed trend line.