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
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