“Sentiment towards the dollar has … reversed sharply with many analysts now talking up the dollar in favor of the euro, with many citing the problems in Greece in their reasoning,” Coe wrote in a note to subscribers Friday. “Consequently, bearish sentiment has unwound sharply as have momentum indicators; as such the greenback is now primed to reassert its multi-month downtrend.”
To play a weaker buck, investors might consider the mirror image of the dollar ETF: PowerShares US Dollar Bearish (NYSEArca: UDN).
The ETF’s chart is “trading at rising channel support as well as its 50-day exponential moving average,” Coe notes.
PowerShares US Dollar Bearish
