Warning of US Dollar Rebound Peak: Gap Filling, RSI Divergence, and Inverted Hammer Pattern三 Signals Appear Simultaneously

(1) The US Dollar Index touched its highest level in about seven weeks on Thursday, filling the price gap left by the April 7 low, and then experienced a sharp reversal downward. In technical analysis, filling a gap sometimes indicates that the rebound is ending rather than the start of a new upward trend. (2) The Relative Strength Index showed bearish divergence: the US Dollar Index recorded a new short-term high, but the RSI failed to rise in tandem, suggesting that buying momentum may be weakening. At the same time, a shooting star candlestick pattern formed on the daily chart, indicating that buyers briefly pushed the price higher but failed to hold the gains, with sellers regaining control. (3) The above situations have appeared as the upward move stalled near the structural resistance zone of 99.50 to 99.60. Currently, the US Dollar remains within the consolidation range since May 15, but if it falls below the 98.90 area, the consolidation will be deemed over and the view of the rebound ending will be strengthened. (4) A further break below the 97.60 to 97.65 region would negate the developing inverse head and shoulders pattern and heighten expectations of a deeper correction. The US Dollar's movement continues to be influenced by shifting market perceptions of the impact of the Middle East conflict on inflation and economic growth.