One of my main investment themes for the year is the strengthening of the US Dollar. This thesis is based on a couple of fundamental factors coming into play this year: Fed Tapering and the US economy’s relative strength in the world. But ultimately, price action needs to confirm the thesis. The charts below show possible confirmation of this thesis based on the break of a long term down trend and the higher lows printed in the past few weeks. I am long the US Dollar via UUP with an initial price target around $23. Notice that the charts are very choppy and with many gaps and therefore it is not for the faint of heart.
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- UUP Weekly Chart
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- UUP Daily Chart
