No one can deny that the price action in the dollar is bearish, but the consistency of the underlying action suggests something is up. As I've said in previous updates, there may be some fundamental information we aren't aware of. t appears the slide in the dollar is being accumulated.
Here's the initial trendline everyone was watching, and the lateral line is support taken out today. Remember we often see a false break before an important reversal.
The volume alone tells you these are the areas the market has been watching as it surges when UUP breaks those support areas. This also makes it easy for the dollar to be accumulated en masse as someone has to take the sell-side of that trade.
The 30 min 3C chart is at new highs while UUP is at relative new lows.
The 15 mn chart is leading as UUP breaks support.
Even today's break of support on a surge in volume produced a leading divergence on the 10 min chart today.
The 5 mn chart has given no ground as UUP heads lower and remains in a leading position.
And look at the 1 min, showing accumulation at the break of support today. Remember that most asset classes have an inverse relationship with the dollar. You should have upside price alerts set for UUP, the first being a break above $21.06, t may very well be the start of an important move with repercussions throughout the market.
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