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Dollar Index pullback likely to be over
The dollar appears to be set up for another move higher this morning, following yesterday’s pullback to the descending trendline respected over the last week. Given the long wicks that have greeted each attempt to move lower, I expect to see the bulls regain the upper hand once more in the coming hours. This would mean a move back towards the $98.43 region. A close above that would point to another round of buying, which has often been the case in the past when major resistance is broken. Ultimately I believe we will see a move back to $100 in the medium term. However, Friday’s jobs report will probably have a lot to do with exactly when $100 gets hit.