PowerShares DB US Dollar Index Bullish Fund (NYSEArca: UUP) has once again been stopped dead in its tracks at a key resistance level around $23 a share in the wake of dovish comments from Federal Reserve Chairman Ben Bernanke.
UUP was down more than 1% in Thursday’s premarket action after Bernanke said the Fed would likely keep short-term interest rates near zero even if the unemployment rate falls to the central bank’s target of 6.5%. [Gold, Silver ETFs Ripping]
The currency ETF has benefitted from recent strength in the U.S. dollar and expectations the Fed may soon begin tapering its bond purchases. For example, it rallied from a June low of $21.82 a share to as high as $22.98 this week, a gain of more than 5%.
However, Bernanke’s comments after Wednesday’s closing bell have triggered a reversal in the dollar ETF near a horizontal resistance line that has been in place since late 2011. [Dollar ETF Three-Year Breakout May Not be Bad for Stocks]