The US dollar is Consolidating at Recent Highs.

The US dollar has been the ultimate investment safe haven in the recent macro economic environment. If you want some exposure to the US dollar without opening a forex account then check out UUP. It tracks the movements of dollar index tutures. And as you can see it has been in a strond uptrend for a long time with a smooth and clear price channel to trade off of.

UUP performed especially well at the end of last week similar to gold after the US inflation data was released. These are known to be the places to store your money during times of high inflation. We recently had big profit take in UUP that gave us a two day correction that coinsided with the resistance from the body of a candlestick that formed during the pandemic crash. If inflation persists then UUP will surely rise above the resistanace levels mapped out in the chart below. Watch these areas for possible reversals or a little more volatility than usual.

Below you can see the volume picking up big time during this consolidation near these historical highs on UUP. Watch for a break above the previous resistance for confirmation and continuation of the current rally. But dont get impatient as the price may stay within the range I have marked by the yellow lines. It is always a possibility that UUP could consolidate within this range for a while so just wait for the right timing. Basicaly the overall outlook is bullish for the US dollar as long as we have rising inflation. Im predicting inflation to keep rising UUP until UUP's price reaches the term resistance from the very long term price channel from the chart at the top of this post. It will be quite the coincidence to see inflation start coming down as soon as UUP reaches trending resistance. But this happens often. Expect inflation headlines when UUP reaches this price level.

If you want more safe havens to invest in then check out this post on gold futures and its technical analysis.