The dollar’s price action has been balky lately but it is bullish nonetheless. Friday’s thrust reversed a bearish impulse leg on DXY’s hourly chart that had been created the day before. Buyers will need to keep the rally going on Monday, however, to take charge of the intermediate-term trend. Specifically, they will need to generate a C-D follow-through leg similar to the one shown. If they easily achieve its D target, that would be a positive sign, but a move that easily exceeds it would be telegraphing more upside to come. _______ UPDATE (8:57 p.m. EDT): Buyers flunked a test yesterday. Now, if they can’t muster just a little bit of enthusiasm, the dollar is likely to sink to 93.88 (60-minute, a=97.68 on 6/1), short-term. On that basis, this vehicle would be a ‘mechanical’ short from 96.40, stop 97.24.
