It is the boldness with which DXY traverses the space shown in the accompanying chart by which we should judge the mettle of this rally, assuming the dollar achieves the modest heights indicated.  Penetration of both peaks with no intervening B-C pause would be strong evidence that the bull is about to rampage and that the current, somewhat subdued short-squeeze has bigger things in mind. Thus far, though, the rally, such as it is, suggests that carry-trading shorts are not exactly panicked, at least not yet.