The dollar will have a chance to get airborne this week by breaking out of a consolidation begun a month ago. If so, it would likely put more pressure on bullion, which has been weak recently to begin with. There are two price points shown in the chart that we can use to benchmark the rally: 94.11, the Hidden Pivot target of a minor bullish pattern that has been taking shape for nearly two weeks; and the October high at 94.27 recorded a week earlier. If the Dollar Index is sitting above the lower number come Friday, you can safely infer it’s on its way to at least 95.24 (60-min, A=91.78 on 9/22). ______ UPDATE (Oct 25, 8:20 p.m.): Buyers couldn’t get past 94, where resistance appears heavy and sellers determined. Look for another charge from lower levels by week’s end. _______ UPDATE (Oct 26, 10:21 p.m.): The Dollar Index is moving precisely as forecast. It’ll need to push past the 95.24 pivot, however, to demonstrate eagerness and ability sufficient to keep the rally going._______ UPDATE (Oct 29): Buyers stopped just a hair shy of the target on Friday. I expect them to reach it this week, but let’s see what happens rather than try to predict it. An easy move through the pivot would indicate still-higher prices in the days ahead. _______ UPDATE (Oct 31, 4:34 p.m.): Thursday’s powerful leap brought DXY to within 9 cents of the 95.24 target, but bulls will have to exceed it decisively in order to maintain the strongly bullish look of the intraday chart.
