Chart of the Day - Friday, October 18th, 2019

Today’s Chart of the Day was shared on Twitter by Adam Mancini (@AdamMancini4). It's a weekly candlestick chart of the US Dollar Index ($DXY). The index measures the value of the Dollar relative to a basket of six foreign currencies. $DXY has been weak lately despite closing at a two-year high just a few weeks ago, on October 1st. Today, it fell for the fourth day in a row and closed at its lowest level since August. Adam points out that the rally over the past year has been "incredibly weak." You can see that price made a series of seven marginally higher-highs while RSI was putting in a series of lower-highs, establishing a bearish momentum divergence. Adam adds: "A washout to channel support is becoming likely to reset sentiment. A break of the center dashed trendline would be the trigger."