The US dollar index blasted higher on Sunday night, and the action since then gives us an upside target of 77.340. As the attached chart shows, the dollar’s quick gains surpassed numerous external prior highs, but follow-through to the “D” target will be needed to take the index past the prominent 76.870 high of last Wednesday. Should that occur, the dollar’s chart will look a lot less dire than it did at the end of the week. The futures contract has a small $5 tick-value, allowing traders to calibrate risk very precisely. Dollar skeptics can short the 77.340 “D” target with a stop no lower than 77.355. (Posted by Doug “harry” McLagan)
