Thursday, July 9, 2009
US Dollar index: bullish reversal coming?
In the long-term, I believe the USD will decrease in value versus the other currencies (EUR, JPY, AUD, CAD) especially if it loses its status of worldwide reserve currency.
But for short-term trading purposes, the US dollar index could probably go up if it goes above 81.5 (see chart above). I am a buyer at that level and 80.5 is my stop loss.
ETF to focus on: PowerShares DB US Dollar Index Bullish Fund (ticker: UUP).
Personnally I trade directly on the forex by shorting the EUR-USD currency pair.
Will keep you updated when I enter into a trade.
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