DXY – NYBOT Dollar Index (Last:106.49)

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The dollar looks bound straightaway for the 106.49 rally target we’ve been using for the last month or so. I’d expected a correction down to the green line, but it was not to be.  Although my long-term forecast calls for significantly higher prices challenging peaks near 120 recorded decades ago, we should pay close attention to price action at 106.49, since this Hidden Pivot resistance looks sufficiently clear and compelling to thwart the dollar’s strong ascent. I’ll continue to track DXY in any event, since an increasingly strong dollar poses a grave threat to the global economy and financial system. ______ UPDATE Jul 5, 8:20 p.m.): Today’s ballistic rally slightly exceeded the 106.49 target billboarded above. Given the way it speared p and p2, more upside to at least 107.57, (shown in this chart) over the near term appears all but certain. A question for the dismal scientists and pundits to ponder: How inflationary is a runaway dollar??