Yesterday’s breach of a midpoint Hidden Pivot support at 97.46 suggests the dollar will head lower before it can turn around. Specifically, a path to at least 96.74 has opened, or possibly even to 96.02 if the higher number gives way easily. My long-term forecast for the Dollar Index remains extremely bullish nonetheless, with a projection of 120 within the next three years. However, if the 96.02 target is decisively exceeded, especially the first time it is touched, that would signal a potential month or more in the wilderness for the almighty buck. This seems unlikely to me because it implies the euro will continue to strengthen. I must confess that I lack the imagination to see how this could possibly occur. Readers? ________ UPDATE (5:24 p.m.): Thursday’s moderate rally left the short-term picture unchanged. I’m still looking for minimum downside to p2=96.74, although a thrust first exceeding 98.90 would signficantly brighten the outlook.
