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Friday, December 5th, 2014

We identified a long signal in the Dollar Index in January based on the support that had formed around the 80 level.

This long signal has held taking DXY above 82 in March where it has since been consolidating. We have moved our stop condition to a stop on weekly close below 81.835 which is the bottom of the current resistance marked below. We would get a new entry signal to increase position size if we get a weekly close above this resistance level at 83.524. Our initial target for DXY is still 88-90. If we zoom out to the 10-15 year view the longer term targets are then ~105 and ~120:

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