The dollar got some added support last week when European Central Bank President Mario Draghi hinted at additional quantitative easing and the People’s Bank of China surprised global financial markets by lowering interest rates.
“If the Dollar ETF rallies as expected, it will be important for traders to monitor the charts for signs of exhaustion as price approaches the higher target areas. As always, the targets represent estimates of where the actual price might go. For readers who might have a great deal of experience with investing, but for whom the “trading mindset” is relatively new, we recommend studying the uses of common momentum indicators such as the Relative Strength Index (RSI) and the moving average convergence/divergence indicator (MACD) and watching for the divergence and crossover formations that commonly appear on those indicators when a price move is nearing its end,” adds See It Market.
PowerShares DB U.S. Dollar Index Bullish Fund