The last time the DXY was my EDGE Chart of the Day the DXY peaked within pips of what we had expected. Since then the USD has been consolidating, slowly building a “flag” pattern on the 4 hour chart. Based on this chart below, the USD index could pullback towards the 127% extension at 92.93, just above the major breakout point from November 2005 (faint blue line 92.65) which may be the next buying opportunity for the USD index (92.70-90). Here’s the chart:

Blake Morrow

Chief Currency Strategist

Disclaimer – I am short some USD’s (via spot market) currently, but may flip to long in the coming session(s)