U.S. Dollar’s Multi-Year Rally Might Suddenly Be In Jeopardy

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May 16, 2017 11:28am NYSE:UUP


From Chris Kimble: The US Dollar looks to have kissed the underside of key resistance and is starting to fall. Is this a “Kiss Good-Bye” for King Dollar?

Below looks at the US Dollar over the past two years.

King Dollar remains in a short-term falling channel, shaded in pink. Last week it kissed the underside of potential dual resistance at (2), creating a reversal pattern (bearish wick) at (2). So far this week, the US Dollar remains a little soft and is attempting to break last week’s low at (3). Weakness here could suggest that King Dollar just kissed the underside of an important resistance level, which could lead to further US dollar selling pressure.

Below looks at King Dollar over the past 25-years:

King Dollar hit 20-year resistance 5-months ago at (1) and has been falling in price. King Dollar looks to have kissed the underside of dual resistance last week and it is attempting to break rising support at (2). A break of support at (2), could cause concerns for those long and selling pressure could come forward and put a big dent in multi-year King Dollar  rally.

The PowerShares DB US Dollar Index Bullish (NYSE:UUP) was trading at $25.37 per share on Tuesday morning, down $0.17 (-0.67%). Year-to-date, UUP has declined -4.12%, versus a 7.38% rise in the benchmark S&P 500 index during the same period.

UUP currently has an ETF Daily News SMART Grade of B (Buy), and is ranked #10 of 24 ETFs in the Currency ETFs category.

This article is brought to you courtesy of Kimble Charting Solutions.

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