U.S. Dollar Back On The Mend? (UUP)

From Chris Kimble: Technical analyst ll examines the recent action in the U.S. dollar and sees potential for a strong bottom forming — and a subsequent bullish breakout that could hurt metal prices.

The above chart looks at the US Dollar over the past 20-years.

Numerous potential support lines came in to play at (1), at the same time a bullish falling wedge looks to be coming to an end.

Strength by King Dollar looks to be taking place at (2), where it is working on a breakout.

A rally by King Dollar often times puts downward pressure on metals and could do the same to the overall commodity markets. Commodity bulls do not want to see King Dollar remain strong at (2) and push higher.

The PowerShares DB US Dollar Index Bullish (UUP) rose $0.02 (+0.08%) in premarket trading Thursday. Year-to-date, UUP has declined -0.37%, versus a -1.21% 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 #12 of 17 ETFs in the Currency ETFs category.

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