The GoNoGo Charts are painting a bearish picture on the Dollar Index, on a 4 hour chart. We see multiple elements of price action contributing to this outlook.
Prices rallied from a low on April 24th, supported by the trend line on the chart. This trend line was then broken, with an amber bar that is the trend neutral color of the GoNoGo Trend indicator. The color change on the break of this support adds conviction to this move.
At the same time the GoNoGo Oscillator was pushed into negative territory (lower panel). We know that this shouldn’t happen when an up trend is strong. For comparison, we can see how the oscillator stayed positive bouncing off zero while price was rallying and blue.
Finally, this current bar is a “NoGo”, indicating that the trend is now down for the Dollar Index. Click here