USD US Dollar Index Weekly Chart; Double-Top or M-Top; Overbot; Negative Divergence; Upper Band Violation

The US dollar, the all-mighty buck, the greenback, the dixie (DXY), has been on a rocket ship ride this year. The W pattern bottom sends USD into the stratosphere but all good things come to an end.

Price prints a matching and higher high intraweek last week and all the chart indicators are negatively diverged (red lines). She's cooked. Crispy-fried. The dollar is overextended and should receive a neggie d spankdown on the weekly basis. The soggy action should begin a multi-week selloff in the dollar which would also lower the dollar/yen currency pair number.

All the indicators are neggie d and the stochastics and RSI are overbot agreeable to a selloff. The upper band was violated so the middle band, also the 20-wk MA, at 101, is on the table going forward.

The Aroon green bull line is at maximum bullishness while the red bearish line is in the cellar. Both will move towards each other for a bear cross at some point forward. The ADX pink box shows that the drop in the dollar in late 2020 and early 2021 was a strong trend lower but it petered out in 2021 when the chart formed possie d (green lines). The dollar rally turned into a strong trend in February and remains that way but note during the double-top, the ADX is only a hair higher, and overextended, so it is easy to see the ADX rolling over lower from here.

The dollar chart is negative expecting a multi-week down move. On the dollar monthly chart, however, the MACD remains long and strong so the dollar will likely pull back for a few weeks but then rally again back up to the current highs a month or two out. 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.

Note Added Saturday, 6/25/22: Last week, the dollar prints a low at 103.61 and high at 104.73, settling EOD at 103.96, call it 104. If the US stock market rally continues, it may be fueled by higher commodities as the dollar retreats.