Dollar index – Large inverse head and shoulder

On the monthly chart, we see a larger inverse head and shoulder with the upward sloping neckline currently seen at 101.50.

Whether we break above the neckline depends mainly on the Fed ‘dot’ chart to be published next month and the policies President elect Trump adopts after once he is in the White House.

Caution – Failure to take out the neckline followed by a weak monthly close would lead to bearish price RSI divergence on the monthly chart.