With the Fed starting to taper bond purchases, I expect the US Dollar to gain strength and perhaps commodities to weaken.
So I am keeping an eye on the Powershares US Dollar Bullish ETF (UUP) for price confirmation. The chart shows a strong rally at the end of the day on Dec. 18th as expected, but it has to clear $21.80 where it has encountered supply several times in the past. Once that is cleared it can easily go back to $22.20 and ultimately $26 or higher. It is a very choppy chart and not for the faint of heart.
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- UUP Weekly Chart
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- UUP Daily Chart
