My outlook for the dollar remains quite bullish, but the rally looks overbought and ready for a correction. Notice that the minor bull cycle begun in mid-September from 83.86 topped on Monday a nickel from the target at 87.36 (see inset). We have no way of knowing at this point how long the pullback will last, but if DXY were to push decisively above the Hidden Pivot resistance within the next few days, it would attest to the ongoing strength of the bull market. By implication, a pronounced selloff would like cause all investables save the stock market, which is high on crack cocaine, to reverse trends that have been in effect since early July. My gut feeling is that the correction will be minor, but we’ll let the charts speak for themselves in the days ahead.
