Update on 15-Mar-18: As forecast above, the $USD did bounce back-up (as a result of the divergences mentioned above) from around 88 to its current level at 90. It is now hitting the underside of the 50dMA at 90.1 and If it does not overcome this critical resistance and turns back down, then USD could be in big trouble. The next few days will be critical in its future direction. This is definitely one of the most exciting times in my charting career !
Update on 26-Mar-18: The $USD found it difficult to move above the 50dMA resistance and has now fallen to 89.03 which is not surprising due to the news overnight from China about the Yuan replacing the Petrodollar. Looks like it is going to visit the next support level around 80 now. This is a major development for the USD reserve currency but could be very positive for the precious metals.
Update on 6-Apr-18: The $USD moved up decisively above its 50dMA (blue line) yesterday at around 90 which was a key resistance. If it can stay above this blue line, it would be a very bullish move for the reserve currency, at least in the short-term and if it can move above its 200dMA (currently around 92.5) and stay above it, it could even form a strong uptrend. This may surprise many people especially if Gold and Silver also start going up at the same time.
So, the key levels to watch are the 50dMA (blue line) and 200dMA (red line) and whether the $USD stays above or below these lines (see chart below). If it falls below the blue line again and stays below it, then the days of the USD as a reserve currency are likely to be numbered !
