DXY Divergence Predicting a Top
DXY has been range bound since mid-October trapped between 94.75 and 97.50. On March 7th DXY hit a high of 97.71 only to fall again today to 96.94 diminishing any idea of a breakout. On the weekly chart, we can see the TSI building divergence since the lower swing in mid-December and its possible a new lower high is being placed this week.
On the daily chart, the rally leading to last weeks high still has an upward trend, but a Bearish Two Crows candlestick pattern has set up a reversal. I'll be watching to see if this channel holds. Failure to stay above the double bottom at 95.15 means another run 94.75 and if the longer term divergence plays out perhaps a break of 94.75 and the beginning of a bear market in DXY.