Sunday, February 12, 2017

American Dollar (UUP) Looking Good (Unfortunately)

A few internet commentators are writing quite bullishly on the subject of gold which I thought was odd when I looked at U.S. Dollar ETF UUP. I haven't written on currencies in a while but since all the index ETF's are crazy bullish right now, I thought this might be a little more interesting to offer something different. My indicator system called a long/buy on UUP two/three days ago and Friday it broke out of a downward channel that lasted two months. The U.S. dollar is looking very strong; technical indicators reflect this with UUP well above the MA(144) and the EMA(13) closing in on the EMA(34).  Is this a major uptrend channel? I've tried to imagine what it might look like if we have in-fact reached a watershed moment in the past week with wave three having been just completed. I don't think gold is a buy.