Those of you who have been following along with this monthly analysis know I’ve been stubbornly bullish the US dollar index ($DXY) for a long time. The $DXY finally started to show signs of building bullish momentum during August as it extended its major (long-term) uptrend to a high of 93.72, taking out its previous 4-month high of 93.33 (April 2021) and 2021 high of 93.43 (March). It finally looked like the $DXY was set to extend what I consider Wave 3 (of its 5-wave uptrend pattern) into the 38.2% retracement to 50% retracement range of 94.47 to 96.09. But alas, it was not to be, at least not yet, due to a lack of continued bullish enthusiasm late in the month allowing the $DXY to drift back to a close of 92.65, still up from July’s final 92.09. It will be interesting to see what happens with the $DXY as extended unemployment benefits come to an end in early September, though for now I’m still leaning bullish.