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US Dollar Index H4(4 Hours) Chart Analysis – Heikin Ashi Candles, Bearish Convergence, ADX Indicator
On the H4 chart, based on the Heikin Ashi candles we can see that currently, we have strong bearish bodies in downward moving market conditions so it basically reflects a bearish environment. Also, we could see that the price which was moving higher has created a bearish divergence between the first high that has formed at 108.290 and the second high that has formed at 109.008 based on the MACD indicator. The price then moved lower and broke below the last low at 107.149 creating lower lows, thus forming a classical setup of bearish divergence followed by bearish convergence, we may consider these as evidences of bearish pressure. Generally, after a bearish convergence we may look for corrections and then further continuation lower. Currently, it looks like a correction is happening. In addition to this, the ADX indicator gave a bearish signal here at the cross of -DI (red line) versus +DI (green line) and the main signal line (silver line) reads value over 25 which we may consider as yet another evidence of bearish pressure. So everything looks good here for the bears. Until the strong holds, my short term view remains bearish here and I expect the price to move lower further after pullbacks.
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