Wednesday, October 9, 2013

Chart of the Day: What's Up With Ol' Mister Dollar?

Part of the pressure on the metals (and everything else) has to be the bounce that the US Dollar is experiencing today.  Let's take a look at the PowerShares DB US Dollar Index Bullish (UUP), which tracks the greenback ...

(Updated chart)

You can see that the dollar (and the UUP) is bouncing from February support. Well, it better bounce, and bounce hard. Because it seems to be tracing out a neckline. And if its next move isn't back up over that line I marked as "support 1", then the next zig-zag may be WAY down.

But we'll see how it goes. Stay tuned.

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