The Dollar Index has spent the better part of July consolidating a 5% rally and now looks ready for a follow-through thrust. Notice that a ‘buy’ signal was tripped on Friday when DXY exceeded ‘x’ by two cents. That implies that traders should position from the long side. Next, a crucial test for bulls will come at 83.53, the midpoint resistance of the pattern shown. An easy move through it would imply that this is indeed a major rally in the making, with potential to hit 85.66, at least.
