Friday’s sharp reversal occurred within 2 cents of the 88.29 rally target shown. This Hidden Pivot resistance is a relatively minor one in the context of the powerful bull surge begun last summer from 79.74. Even so, I expect DXY to fall to at least 87.14 before it can find traction. If that ‘hidden’ support fails to hold, however,the next opportunity for a reversal would come at 86.84. However long the correction lasts, the long-term charts suggest that the next thrust will carry to 91.48. That would exceed two important peaks at 88.71 and 89.62 that were recorded, respectively, in June 2010 and March 2009. It would also hold very bullish implications for the dollar going forward, since it would create a very powerful impulse leg of weekly chart degree. The last time this happened was nearly 15 years ago.
