Dollar Index (82.32)

The rally begun from the low 70s in mid-July looks bound for a crucial test of strength at 84.96, a Hidden Pivot resistance that lies about 2% above the buck’s recent recovery high at 83.19. The target seems almost certain to show some stopping power, but if it is instead easily brushed aside, a strong dollar could be with us for a while. For now, 84.96 can be used as a minimum upside objective over the near term. The midpoint resistance, now a support, lies at 80.42, and that’s where we might expect the Dollar Index to hang out if it needs to build some thrust.