An exchange traded fund tracking the U.S. dollar is up sharply the past two days after bouncing at the 200-day simple moving average, which has provided support in recent months.

PowerShares DB US Dollar Index Bullish (NYSEArca: UUP) is up more than 1% the last two days after hitting support around $21.80 a share, noted Wednesday.

The ETF follows an index measuring the dollar’s strength against a basket of currencies.

“Notice that UUP formed a higher low above the late October low and this surge could signal a continuation of the November-December advance,” said StockCharts senior technical analyst Arthur Hill.

The recent bounce in the U.S. dollar has cooled the stock rally and weighed on precious metal ETFs indexed to gold and silver.

The rise in the dollar this week has been attributed to Tuesday’s release of the Federal Reserve minutes which “suggested that the bank wasn’t ready to take more action to push interest rates lower,” the Associated Press reported.

Gold prices were down 3% to trade around $1,620 an ounce on Wednesday afternoon.

PowerShares DB US Dollar Index Bullish

Charts source:

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