The Dollar Index has been consolidating since early October for a likely push to the 87.98 target shown. Although this would leave it just shy of a breakout above the key resistance represented by the 2010 high at 88.71, it would not exhaust the rally targets that can be projected from 2011’s bear-market lows. The highest of them would not only beat 2010’s top, it would also surpass the equally daunting one made a year earlier at 89.62. If both of these resistance peaks are going to be exceeded, confirming the health and longevity of the dollar bull, we should see hints of this in the failure of corrective abc patterns in all time frames to reach their D targets.
