The correction begun from 98.37 a month ago is about to run out of room. For one, there’s a clear and compelling Hidden Pivot support at 95.94 where we might expect a turnaround. And if it fails, there’s a structural support just below it at 95.74 that’s tied to an important low recorded in March. It can be used as a point ‘A’ for purposes of setting up a counterintuitive buy signal. Regardless of whether you trade this vehicle, a ‘CI’ buy signal would have bearish implications for gold, which for the last three weeks has been in one of the most promising rallies in years. A strong dollar would affect the entire universe of investable assets, so we’ll want to monitor DXY’s price action diligently. _______ UPDATE (Jun 27, 5:50 p.m.): The low I’d projected is holding so far, with a bottom 10 cents off the 95.74 support noted above. However, DXY has not gotten much loft and will remain in the danger zone until such time as it pops above 96.80. _______ UPDATE (Jul 1, 7:37 p.m.): DXY has put some distance between itself and the recent low I’d predicted, but bulls are still not out of the woods. That would take, for starters, a rally exceeding the 97.76 peak shown in this chart. _______ UPDATE (Jul 30, 10:56 p.m.): The Dollar Index has slightly exceeded the 97.76 peak noted above and now faces key resistance from some peaks recorded in May and June. If and when it exceeds them, look for more progress most immediately to the 99.05 target shown in this chart.
DXY – NYBOT Dollar Index (Last:98.06)