$DXY update, $UUP
Updated
-RSI inverse H&S formation, looks to be gaining strength and passing test at 50 RSI
-Downward trend (orange trendlines) was broken. Now DXY is trading in a parallel channel (white borderlines, gray centerline) and has been bouncing off the bottom like a pinball and then hanging around the midway point of the channel consistently.
-MACD is curling up and crossing.
-US economy is stronger than ever. Tapering and rate hikes are typically bullish for the dollar and tend to make it more appealing, hence stronger
-Targeting 97 or so for a medium-term target, back towards a 100 in the long-run
-This of course could be a headwind for emerging markets if it plays out
One way to play this if you don't have a forex trading account is to use the ETF UUP. Full disclosure, I am in UUP calls but you can also just buy the ETF outright if you prefer that.
-Downward trend (orange trendlines) was broken. Now DXY is trading in a parallel channel (white borderlines, gray centerline) and has been bouncing off the bottom like a pinball and then hanging around the midway point of the channel consistently.
-MACD is curling up and crossing.
-US economy is stronger than ever. Tapering and rate hikes are typically bullish for the dollar and tend to make it more appealing, hence stronger
-Targeting 97 or so for a medium-term target, back towards a 100 in the long-run
-This of course could be a headwind for emerging markets if it plays out
One way to play this if you don't have a forex trading account is to use the ETF UUP. Full disclosure, I am in UUP calls but you can also just buy the ETF outright if you prefer that.
Trade closed manually
Expecting a slight pull back will initiate put positions if it doesn't close above the trend line again tomorrow with significant volume.Note
Still remaining in the channel. My assumption is that it will head towards the lower bound as people move away from dollar dominance.Note
I've been spot on so far, I now see a reversion to the mean inbound.
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