The dollar tripped a ‘mechanical’ buy signal on last week’s pullback to the green line (see inset), but it came off a high that fell short of our sweet spot midway between p and p2, and that’s why I’m not recommending aggressive action. My gut feeling is that the signal will produce at least a one-level move from x to p, but my still-bullish long-term forecast for the dollar implies that the bounce, if there is one, should do better than that. Alternatively, if weakness stops out the pattern’s ‘C’ low at 110.06, that would suggest a more significant correction lies ahead before DXY can blast off for D=117.16 or perhaps higher. _______ UPDATE (Oct 27, 12:16 a.m.): I expect the Dollar Index to take a potentially tradable bounce from exactly 109.28, the ‘D’ target of this pattern.