Technical Decision Time for the U.S. Dollar

The time of truth for the U.S. Dollar, as it recovers from its 7.2% March-May correction right to a test of key multi-week resistance at 95.80 to 97.00, which if hurdled and sustained, will confirm that a new upleg is in progress, destined for new highs above 100.39.

Of course, most of impetus for DXY recovery strength has come from Euro weakness in reaction to QE supportive comments and actions from ECB Heads, and from bond purchases. To the extent that the ECB remains fully committed to QE, the DXY will derive renewed tailwinds within its otherwise dominant, intermediate-term uptrend.