We can clearly see bearish divergence on the weekly chart for the DXY. I've been pointing this out since July.
What is bearish divergence?
This occurs when the price reaches higher highs, while the technical indicator makes lower highs. Although there is a bullish attitude on the market, the discrepancy means that the momentum is slowing.
The price can continue to go higher, but it's only a matter of time until momentum slows down enough to where we see a long-term reversal to the downside.
What is bearish divergence?
This occurs when the price reaches higher highs, while the technical indicator makes lower highs. Although there is a bullish attitude on the market, the discrepancy means that the momentum is slowing.
The price can continue to go higher, but it's only a matter of time until momentum slows down enough to where we see a long-term reversal to the downside.