We all know quantitative easing devalues the Dollar but contrary to that general statement it looks as though we could see the dollar index continue to rise for a few more weeks. If we analyze the chart of the Dollar ETF (UUP) it is clear that the short term momentum has turned up. The break above the down trend line and recent bounce off support bodes well for the dollar index.
The bull flag chart pattern that has formed in the past month has a
measured move price target of roughly $22.30. The level also happens to
be a key pivot point on the chart along with high volume resistance. I expect the dollar to continue to work its way higher over the next
week or two with $22.30 being the line in the sand where sellers will
jump on price and drive it back down, or at minimum force price to
consolidate for a few days.
US Dollar ETF Trading Strategy – Daily Chart Analysis
Chris Vermeulen – www.Gold & Oil Guy.com - Free Trading Ideas
Our new video: Why Market Makers Can’t Screw you with ETFs