The dollar’s intraday charts have turned impulsively bearish over the last week, although there is not yet any technical evidence to suggest a serious decline is coming. Nevertheless, we’ll need to monitor DXY’s vital signs closely, since any pronounced weakness could hold threatening implications for yields. If the downtrend is going to stay within the range of the last few months, we should see a robust (and tradable) bounce from whatever p midpoint forms (see inset for a hypothetical sketch). _______ UPDATE (February 5, 12:55 a.m. EST): The Dollar Index has in fact taken a wicked bounce from ‘p’ that is bullishly impulsive on the 480-minute chart. This implies more strength to come — and that any moderate pullback be regarded as a buying opportunity.
