The US Dollar has been very weak lately, and we reached a support level this week that is very important. Using the UUP which is a Dollar Bullish ETF, we can chart the movement of the US Dollar and predict future patterns.
As you can see from the chart above, we are testing the support around $23.90 on the ETF. If this level doesn't hold, then we could head all of the way down below $23.
This week's bar gives us a bear set-up scenario, so we need to see confirmation next week below $23.87 for a bear confirmation. Also, ADX is only currently at 16, so we need to see a rise in ADX above 20 and ultimately 25 before we get that huge downtrend.
Most people think a weak dollar is bad. To the contrary, any move in the markets is good, as long as you know what to look for. Traders make the most money off of movement, one way or the other. Lean to spot moves like this outside of the stock market for sweet profits!
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