$DXY update, $UUP

-RSI inverse H&S formation, looks to be gaining strength and passing test at 50 RSI
-Downward trend (orange trendlines) was broken. Now DXY is trading in a parallel channel (white borderlines, gray centerline) and has been bouncing off the bottom like a pinball and then hanging around the midway point of the channel consistently.
-MACD is curling up and crossing.
-US economy is stronger than ever. Tapering and rate hikes are typically bullish for the dollar and tend to make it more appealing, hence stronger
-Targeting 97 or so for a medium-term target, back towards a 100 in the long-run
-This of course could be a headwind for emerging markets if it plays out

One way to play this if you don't have a forex trading account is to use the ETF UUP. Full disclosure, I am in UUP calls but you can also just buy the ETF outright if you prefer that.

Trade chiuso manualmente:

Expecting a slight pull back will initiate put positions if it doesn't close above the trend line again tomorrow with significant volume.

Commento:

Still remaining in the channel. My assumption is that it will head towards the lower bound as people move away from dollar dominance.

Commento:

I've been spot on so far, I now see a reversion to the mean inbound.