Friday, May 17, 2013
U.S. Dollar ETF $UUP is Near the July 2012 High, Above 200W Moving Average
Whether traders are positioning for Fed tapering/tightening, higher rates, or a pending deflationary depression, the U.S. dollar is trending higher at the moment and near the July 2012 high. I think gold is getting killed on the belief that tightening/tapering/higher real rates are coming, at least in the near-term. Some gold bulls believe the long-term trend for gold is still intact, so we'll see what happens. The U.S. dollar ETF ($UUP) is currently trading at $22.91 and near $23.14 resistance. Keep watching the US Dollar Index versus the market and commodities here. $UUP also broke above the 200 week moving average recently (second chart). Watch to see if the 50 week crosses above the 200 week, which would confirm some bullishness imo. If it breaks above ceiling resistance it could test that multi-year downtrend line which was created during the financial crisis. Did the U.S. Dollar Index (DXY) break out of its rhomboid vertex?
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