Purely from a technical perspective, the Dollar Index (DXY) appears to have broken above its two-year resistance plateau at 81.60/80. It popped to 83.54 into June 1st, and since has returned to successfully test the prior breakout level– and now has turned back to the upside in what looks like classic confirmation of major base formation ahead of a powerful advance.
In this case, the DXY projects to the 86.00 area, on the way to 88.00. Only a failure to hurdle it prior high at 83.54 followed by a decline that breaks 81.20/00 will delay the anticipated advance.
