Previously, higher yields on U.S. government debt, compared to German bunds, attracted more European investment interest. Consequently, as Europeans invest in U.S. dollar-denominated assets, the investors have been selling euros for U.S. dollars.

“A likely price target area for a downward move on the US Dollar ETF (UUP) is between 24.15 and 24.50, with the center line of the channel offering further support in that region. In addition, the cyclical timing technique suggested on the chart may point to the approximate time when the correction can finish,” adds See It Market.

PowerShares DB U.S. Dollar Index Bullish Fund