The USD index (DXY) dropped down to test the top of its old range; highs from Jul. ‘12 to Jul. ‘13 at 84.53-10 and the fact that it held this level well as support (mainly on a weekly close basis) indicates that bullish momentum is still very much intact, notes Goldman Sachs. "Fom a wave perspective, price action since early-May looks like an incomplete iv of v waves. This pattern has been replicated in several of the key G10 FX markets; namely EURUSD, USDCHF and NZDUSD. What it implies very simply is the following; i) there is one last leg to this impulsive up move necessary to complete the full v-wave sequence and ... (full story)