Let's examine the chart of the USD index:
1) The USD index managed to come back above the 75.0 important support: it is now at 75.23.
2) The 50 day moving average has been playing the role of a key resistance: the USD index never managed to get above it during the past 6 months. But for how much time still?
3) There is a bullish divergence that has been building over the past months between, on the one hand, the USD index and, on the other hand, the MACD and RSI indicators: the slope of the USD index is going down whereas the slope of the MACD and RSI is going up. This kind of technical divergence can lead to a sudden and powerful rebound of the US dollar at anytime, which would lead to a violent decline of the equity and commodities markets.
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