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20.08.2019 03:11 PM
Dollar index is eyeing 99.15 but with glaring weekly bearish divergence signs.

The Dollar index is moving to new highs and towards major resistance area. There are important bearish divergence warning signs for bulls.

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Black lines - bearish divergence

Green rectangle - short-term target

I believe upside potential is limited for the Dollar index. Price could continue higher towards 99-99.20 but I believe this upward move will be short-lived. The RSI is approaching the black resistance trend line. Each new high in price is not followed by new high in the RSI. This is not a bearish signal but just a warning to bulls in order to be cautious. That is why I expect price to move towards 99 and then reverse.

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