Dollar broke the downtrend

The chart of dollar ETF (UUP) shows that dollar has broken its downtrend line.

The volume is quite high. It can show the potential new uptrend for dollar.

Today the stock market is up, dollar slightly up, gold down. Looks like there is changing of relation between three of them. Usually dollar went down while stock market and gold went up.

It looks like the big fund institution is moving their fund from gold. Their fund then can be allocated to cash or stock market. And they stop shorting the dollar. Big institution can not move their funds in only one day, so they have to start early, in anticipating the Fed may increase the rate in 2010

UUP has broken the downtrend line, retested it and go up. Based on technical analysis it show probability that this is not only a regular bounce for dollar.

So I recomend go long on dollar, buy on support for UUP. The long call is not really expensive.

Stock is moving sideways with bullish bias. Continue to buy on support for swing trading.

Best regards

Snip