The US Dollar Index is trading at the monthly highs ahead of key inflation data this week with the bulls now approaching technical resistance at the yearly highs. The battle lines are drawn heading into the close of the month / quarter with PCE data on Friday likely to offer some guidance here. These are the updated targets and invalidation levels that matter on the DXY short-term technical charts. {chart} Technical Outlook: In last month’s USD Short-term Outlook, we noted that DXY was testing confluent support and that, “rallies should be limited to 104.39 IF price is heading lower on this stretch with a close below ... (full story)