DXY Hits Our Target!

The US dollar has shot higher, blasting through our target of 109.86, and hitting our next target of 110.20 exactly before retracing slightly. We frankly thought it would take longer to hit this level, but the DXY clearly has a lot of momentum. The Euro is now below parity and bond yields are soaring, which has contributed to a strong dollar. A technical retracement is likely so watch for those levels in the 109's to provide support, otherwise 108.50 should be a floor for now. Our next target is at 111.37.