The bullish pattern shown looks incapable of guile, so we don’t have to stick out our necks very far to heap opprobrium on those who can’t stop obsessing over ‘inflation’ and a dollar supposedly headed into BRIC-induced oblivion. As I will continue to point out, the last thing the world needs right now is a strong dollar, since it would increase the burden of debt for all who owe dollars. That is reason enough for DXY to keep on rising, since the mounting troubles of borrowers in and of itself will continue to exert mild short-squeeze pressure on the buck. Accordingly, we should expect the rally to continue to at least p=106.32 over the near term. When DXY pops thought that Hidden Pivot resistance, presumably headed for D=113.06, we’ll see some erstwhile dollar bears start to break ranks. Recession will be full upon us by then, even if unheralded by mainstream news sources.
DXY – NYBOT Dollar Index (Last:105.05)
