The actively managed USDU’s advantage over UUP in recent weeks is likely attributable to the former’s exposure to some faltering emerging markets currencies, including the Mexican peso, Chinese yuan and Brazilian real. UUP tracks the U.S. Dollar Index, which follows the dollar against a basket of developed market currencies.
Looking at the weekly continuation chart for Dollar Index futures, we notice the market making a series of lower highs since the market made 12-year highs back in March. Prices are currently holding near the 20-week moving average, as we appear to be in the midst of a consolidation phase. The 14-week RSI has turned neutral, with a current reading of 52.70. We do see chart support near 92.35 for the front-month futures with resistance found near 98.45,” according to Options Express.
PowerShares DB U.S. Dollar Index Bullish Fund