The decline in the value of the US Dollar as represented by the PowerShares DB US Dollar Bullish Fund (UUP), has taken shares back down to the 62% Fibonacci retracement level of the 2014 low and the 2015 high range.
The fund has made three long wick candle lows just below this level and held support. But it has been unable to sustain a bounce back above resistance in the $23.65 area.
There are, however, several bullish technical indications on the weekly chart that suggest resistance will be broken, and shares of the UUP are headed higher.
The stochastic oscillator is tracking higher and moving above its center line. Moving average convergence/divergence has made a bullish crossover and a higher low in bullish divergence to the fund price.
There is also some renewed buying interest in the UUP, as reflected in the Chaikin money flow reading. It is in positive territory and at its highest level in over a year.
Underlying price momentum indications and recent buying interest is suggesting that the nearby overhead levels of resistance will be taken out. If this is the case and the move is sustained, it is the first step in reversing the long-term downtrend and a positive sign for the US dollar.