USD US Dollar Daily Chart Negative Divergence Price Extended

The US dollar is ready for a pull back as the negative divergence (red lines) indicates. The early November spank down was short-lived since the histogram still had upside juice (green line). Then the top five days ago occurs but the ADX line was still floating higher. Sometimes it is like herding kittens waiting for all the indicators to line up. Now the red lines show neggie d across all indicators with the matching price high so the dollar will take a rest.

The brown lines show support levels. Note how price is above the 20-day MA above the 50-day MA above the 200 and needs a mean reversion a la the early October and early November pull backs (dots). The ADX shows a far stronger trend during August-October for the run-up in price than now (pink box). The dollar had one heck of a rally and simply needs to take a breather.

On Monday morning early East Coast time, the dollar is off the highs from above 88.4 down to 88.06. Gold and silver place a base and recover from their recent beatings as the dollar weakens. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.