US Dollar Index Bullish Fund Rolls Over

We have been paying a lot of attention to the dollar lately. With this mess in Europe, how can we not? The Euro represents a majority of the overall US Dollar Index. So when the Euro rallies, the Dollar is likely to get hurt. When the Euro sells off, then the Dollar Index tends to rally.

Today we are looking at $UUP, which is the Powershares DB US Dollar Index Bullish Fund. The first chart shows the weekly performance of this Fund since it was originally created. Earlier this year, the fund made all-time lows and has been stuck below those key support levels ever since.

This former support has now turned into resistance. It certainly came into play this week after the Dollar tried to break out on this Euro weakness. Notice the rollover at the 200 day moving average in the chart below. The slope of that particular moving average is still down which makes it even more difficult for the Dollar to have a sustained breakout.

The Trend in the Dollar has been down for a long time. We have been talking about this for a while. It appears now that the Dollar has a lot of work to do if it wants to turn this thing around. I don't see it. I still have to give the benefit of the doubt to the dollar bears. It sure looks like this is going to be an interesting Fall.....

(did you catch that?)