Friday, May 06, 2016

U.S. Dollar (UUP): Biding It's Time, But Not For Long

This has been a call that I'm much more proud of but the bullish declining wedge in UUP is still holding strong even though it moved briefly beyond the support line after being a little oversold (this was about five sessions ago). It has since come back to the EMA(34) where we have witnessed a pause and a closing-in on the final resistance line of the descending wedge. An excellent long/buy signal has appeared on the MACD and when it breaks out the 38.2% Fibonacci retracement is $24.77 with 61.8% retracement at $25.28. I don't see the U.S. dollar going much further than the 61.8% level as a double top has been put in with nothing but a long-term decline to look forward too.