DXY – NYBOT Dollar Index (Last:102.33)

The dollar fell hard on Friday, wiping out gains achieved earlier in the week, but not before thrusting above two ‘external’ peaks recorded in, respectively, early December and early January. The impulse leg had sufficient power that even a relapse that takes out Friday’s low should still be viewed as corrective. The next big rally target would be into the 106-107 range or even higher, but first buyers would have to get past a ‘voodoo number’ at 106,42 mentioned here earlier. If this scenario plays out, then gold, which rebounded sharply as last week ended, would once again come under pressure. _______ UPDATE (Mar 15, 11:35 p.m.): It’s fascinating to see the dollar trading like a penny stock, leaping this morning from a low that lay just four pennies beneath a stop-out low from two days earlier. DXY appears headed for exactly 106.73, assuming it can overcome the very precise stall at p=105.09 of the pattern shown here. _______ UPDATE (Mar 20, 9:25 p.m.): The midpoint Hidden Pivot (p) at 105.09 stopped the rally dead in its tracks, sending DXY plummeting. Now, if p2=103.27 fails as support, expect the next leg down to hit 102.66 exactly, followed by a tradeable bounce. Here’s the chart.  _______ UPDATE (Mar 22, 9:30 p.m.): The Dollar Index liquefied the clear and compelling Hidden Pivot support at 102.66 noted above, testifying to the urgency of the Fed’s campaign to destroy the dollar. Recent price action implies DXY will take out the spike low at 100.82 recorded on Feb 2. Here’s the chart.