The Dollar Index is closing on an important target at 85.16 that can tell us whether it’s about to go into a prolonged correction. An easy move past the Hidden Pivot would imply that even larger, bullish patterns will continue to drive this vehicle to eventual highs above 90. However, if bulls are about to get waylaid by a correction of perhaps three weeks or longer, DXY will either stall precisely at the pivot and drop back sharply, or plummet without having reached it at all. The latter scenario would be more bearish, but in any case we should minor DXY’s progress toward 85.16 in the days ahead, since it is a most crucial threshold.
