This Week’s Dollar 5/16 - 5/20
$Wisdomtree Trust Bloomberg U S Dollar Bullish Fd (USDU.US)$ $Powershares Exchange Traded Fd Tst Db Us Dollar Index Bullish Fund Etf (UUP.US)$ $DB US Dollar Index Bearish Powershares (UDN.US)$
The US dollar index opened several basis points in the green this week. Looks like another bullish week for the US dollar. It also appears that the major indices will have a green week as well which might slow the dollars massive rise that it has been on.
The US dollar has been skyrocketing for several months compared to other countries currencies. With inflation at super high levels, geopolitical tensions around the globe, and most asset classes losing great value recently, it seems like everybody is flocking to the dollar as a safe haven. UUP is a currency ETF that is mainly the US dollar weighted agains only the main currency pairs from other developed countries.
The technical picture on the dollar is super bullish. Even though it has been on a massive run up for quite some time it does not show any signs of slowing down at all. The price has been climbing up this price channel abiding to support and resistance all the way up for over 10 years. If the trend continues then we should expect more upside. Long term trend is obviously bullish but you might expect some downside near this price channels resistance level at the top of the channel. Also if we get some positive news on the Russian war or inflation then we might get a cool down of the US dollar index.
The US dollar index opened several basis points in the green this week. Looks like another bullish week for the US dollar. It also appears that the major indices will have a green week as well which might slow the dollars massive rise that it has been on.
The US dollar has been skyrocketing for several months compared to other countries currencies. With inflation at super high levels, geopolitical tensions around the globe, and most asset classes losing great value recently, it seems like everybody is flocking to the dollar as a safe haven. UUP is a currency ETF that is mainly the US dollar weighted agains only the main currency pairs from other developed countries.
The technical picture on the dollar is super bullish. Even though it has been on a massive run up for quite some time it does not show any signs of slowing down at all. The price has been climbing up this price channel abiding to support and resistance all the way up for over 10 years. If the trend continues then we should expect more upside. Long term trend is obviously bullish but you might expect some downside near this price channels resistance level at the top of the channel. Also if we get some positive news on the Russian war or inflation then we might get a cool down of the US dollar index.
The indicators are deep in oversold territory but this is a healthy rally. RSI could stay oversold in a healthy rally for quite some time. Very short term downside can be expected from time to time when in a swift rally like this.
The only negative I see on UUP is on the 4 hour candles. There is possibly some short term downside in the works based off of this potential divergence that appears to be forming. Bearish divergence can lead to short term downside a lot of the time.
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SpyderCall OP I want out please : I am always happy to share. I wouldn't short the dollar just yet. When economic conditions in europe improve then the value of the Euro will increase and that should hurt the US dollar. also when the Japanese government stops buying bonds to increase inflation then the Yen should increase in value and that should hurt the US dollar as well. if the Japanese government does this at the same time as the European economic conditions improving then the dollar should fall even more. but we have to wait for these two things to happen before we short the dollar in my opinion. there could be some other factors that might make the US dollar fall like if we have really bad economic data that releases. that is the only other way I could see the dollar falling