Quarterly Outlook
Macro outlook: Trump 2.0: Can the US have its cake and eat it, too?
John J. Hardy
Chief Macro Strategist
Technical Analyst, Saxo Bank
However, on the short- to medium term the Dollar Index is showing RSI divergence which indicates a correction is in the cards, but if RSI breaks above its upper falling trend line on the weekly chart the uptrend could extend further as describe above.
A correction is likely to be minor and if the Dollar Index doesn’t close below support at around 104.52 the uptrend is intact.
Also, on the daily chart there is RSI divergence indicating a looming correction possibly down to t4est the lower rising trendline.
However, if RSI breaks above its rising trendline the divergence can be cancelled and the uptrend will continue. A break below 107.65 could be the tricker for a correction.
Macro outlook: Trump 2.0: Can the US have its cake and eat it, too?
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