Dollar in trouble

The USD Dollar index monthly continues to drop while the market is surging higher. After an extreme rise in the last two years, Dollar corrects from highs.

January did drop below the trend line which is bearish. At the moment it is on several levels of support which will be hard to break on the first try, therefore, it didn't get a sell signal. There is support from April 2022 highs, close to 0.5Fib retracement from low to high, and here is 20 month MA which will very likely act as support.

RSI did cool down and now is neutral. MACD histogram is close to ticking red while the MACD line is falling below the signal line which is bearish for Dollar.

It is likely dollar will bounce from this level but it is a big question will it only be bounced or a new rise? It is a big question of what the FED what to see, a weak or strong dollar as a weak dollar has big inflationary pressure.