I’ve returned to the long-term chart, which shows a trendline that precisely foretold the so-far modest 3% rally begun in early September from 91.75. It’s plain to see that the Dollar Index will retest the line, which comes in around 92.13 this week. I expect the support not only to be reached, but to be at least slightly exceeded. That would not necessarily doom the dollar, but it could conceivably trigger a strong snap-back rally once bulls have been shaken out. Alternatively, if weakness continues below the trendline, my minimum target would be 91.72, and thence 90.20, and finally 88.69. These are Hidden Pivot levels that come from a bearish pattern shown in this weekly chart.
DXY – NYBOT Dollar Index (Last:92.72)