The US dollar index reached a new higher high today as we expect some critical news for the dollar to come after the surprising Fed meeting that will take place today. Rates are forecasted to be raised earlier than expected. Why else would the Fed hold a surprise meeting?
The US dollar index is trading above support at 98.75 and above the Ichimoku cloud. A trend is bullish. The price is moving towards higher highs and higher lows. But we also have a bearish divergence in stochastics. The price is not approaching a higher high as the index price is doing. This should raise our alert and bulls should raise their stops to protect their positions.