Wednesday, March 11, 2015

US Dollar at Climax Point - Breaking Above Upper Trend Channels

Click on Chart of UUP to Enlarge

In a recent post I suggested that the US Dollar index may break above the upper boundary of a high-high trend line.  As of today it has done so on three separate high-high trend boundaries of increasing vertical angulation.

While it appears to me that some more sideways and slightly higher action would be ideal before a top, I view this at an ideal momentum point to exit longs.  This appears to be a climactic move.  I would suggest to keep a daily routine of analysis on commodities the trade inversely to the dollar for trade set-ups.  I follow gold, silver, and oil most closely, and so I am watching those on multiple time frames to potentially purchase at a trough on the chart that has the potential for a nice rebound.

Pete

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