DXY – NYBOT Dollar Index (Last:109.41)

The year-long struggle the Dollar Index had getting past the midpoint resistance at 106.31 argues against giving it a free pass to the 113.02 ‘D’ target that would complete the pattern shown in the chart. Even so, the way the rally picked up steam to pierce p2=109.66 as the week ended was impressive and suggests more headway toward the target is likely. We have still-higher targets outstanding, including one at 124.82 that I reiterated here last week. A middling resistance at 110.08, an inch above Friday’s high, will also be shortable and warrants your attention. It is notable that the dollar’s strength has not crushed gold, only hindered it. _______ UPDATE (Jan 18): A short from 110.08 as suggested would have caught the top of a nasty swoon. The low of the move did not quite reach a 108.40 correction target, and that is bullish. Look for a push above the recent high at 110.18 in the week ahead.