Two strong rally legs last week failed to push the Dollar Index to p=94.01 . The upthrusts also choked on a fine opportunity to surpass some challenging external peaks, the first of which lay just a tick above Thursday’s high. This is unencouraging, but because DXY is on a theoretical ‘buy’ signal tripped last Tuesday at the green line, we’ll give bulls the mild benefit of the doubt for now. It would take a two-day close above 94.01, however, to put D=95.00 in play. However things play out, you can count on gold and silver quotes to remain exquisitely and inversely sensitive to every uptick/downtick in this vehicle. _______ UPDATE (Oct 20, 6:11 p.m.): Yet another day of weakness wrecked the short-term-bullish pattern when DXY took out its point ‘C’ low. There has been hardly a bounce, so we should prepare for even lower prices in the days ahead. ______ UPDATE (Oct 22, 12:05 a.m.): The dollar looks so atrocious that just a couple more bad days will wipe out a rally begun from 91.80 on 9/1 that looked like a plausible beginning for a new bull market. Here’s the chart.
DXY – NYBOT Dollar Index (Last:92.80)