The pattern shown is gnarly, but Friday’s pause precisely at its midpoint Hidden Pivot implies we’re on the right track. The entire week was spent head-butting the 95.89 target of a smaller pattern, but the close above it suggests higher prices lie in store. This conclusion would be validated if DXY can close above p=96.09 for two consecutive weeks, or trade 65 or more cents above it intraday. At some point the dollar’s universally unexpected strength is going to start hurting U.S.-based multinationals, but not before the chimps decide where they’re going to rotate all of the OPM next.
DXY – NYBOT Dollar Index (Last:96.05)