Price action looks opportunistically bullish– meaning there is no particular buying interest at the moment, only the menacing silence of predators waiting for that piece of news that will allow them to short-squeeze the dollar to the next level.  The upthrust would need to clear the 76.43 peak recorded on March 28 to have any significance for us, since that would refresh the impulsive bullishness of the daily chart.  However, even then the running start that will have been required to vault this structural resistance would necessarily diminish whatever power we might impute to the move.

Keep in mind that there is nothing “fundamental” to rally the dollar right now, only technical forces that have had months to build up torque.  How much of it was spent by the carry-trade unwind of the last two weeks?  Time will tell, but herky-jerky action will be our clue that there are still some nervous dollar-shorts out there.  If you want to keep close tabs on the greenback but don’t subscribe, click here for a free trial subscription to Rick’s Picks. We are monitoring the dollar very closely ourselves because it has long been a given that its collapse will, finally, take the global financial system down with it.